Marathon parks $1.1b in Bitcoin after note sale

After completing a convertible note sale, Bitcoin miner Marathon Holdings has increased its total BTC holdings to $3.9 billion.

Marathon Holdings bought 11,774 Bitcoin (BTC) for an estimated $1.1 billion at a spot price of approximately $96,000 per token, the Florida-based blockchain infrastructure firm announced on Dec. 10. At $96,500 per token, Marathon Holdings’ total Bitcoin holdings were valued at nearly $4 billion. BTC was trading closer to $98,000 at press time following a liquidation flush on Monday, Dec. 9.


Marathon parks $1.1b in Bitcoin after note sale - 1
24-hour BTC price chart – Dec. 10 | Source: crypto.news

Marathon raised the capital for its Bitcoin purchase by offering convertible notes, a growing trend among companies building BTC treasuries. Investors buy these notes with cash and receive rights to company shares, while firms use the proceeds to acquire Bitcoin.

This practice, popularized by MicroStrategy chairman Michael Saylor, has also introduced a new metric for measuring corporate Bitcoin purchase performance. The so-called “BTC Yield” tracks percentage changes in BTC holdings relative to outstanding diluted company shares.

Marathon disclosed a 12.3% quarter-to-date and 47.6% year-to-date BTC yield as of Dec. 9. Companies are also exploring BTC-based rewards for shareholders, creating a closer integration between cryptocurrency and corporate finance.

Meanwhile, BTC mining Competitor Riot Platforms plans to purchase Bitcoin using proceeds from its $500 million convertible note sale. Saylor has praised both Marathon and Riot for adopting the Bitcoin Standard, highlighting a growing appetite for BTC among U.S.-based entities.

MicroStrategy itself led this roster of companies exchanging share rights for BTC capital. Saylor’s firm has bought over $25 billion worth of BTC since 2020, issuing securities and raising debt to foot the bill. MicroStrategy was also the largest private BTC holder, with over $40 billion in the digital asset.

Related Posts

Ethereum’s Pectra upgrade could serve as catalyst, but market sentiment ‘remains lukewarm,’ analysts warn

Despite a $500 million influx into spot Ethereum ETFs, the second-largest crypto by market cap continues to struggle with little price movement. Ethereum’s (ETH) price is still stuck, even with…

BNB Chain hits 500m active addresses at the heels of TST frenzy and MEV concerns

Binance Smart Chain has surpassed 500 million unique active addresses, coinciding with the frenzy surrounding the launch of its test TST meme coin. In a historic milestone, Binance Smart Chain…

Leave a Reply

Your email address will not be published. Required fields are marked *