MARA Holdings, one of the largest Bitcoin mining companies, acquired 6,474 BTC valued at approximately $619 million. This was enabled through a $1 billion convertible note issued at a 0% interest rate.
Acquisition and Financial Details
The company was able to purchase an additional 703 Bitcoin, adding to the 5,771 BTC acquired previously on November 23. The average price per Bitcoin in this transaction was $95,395.
Convertible Notes and Their Role
Convertible notes are a form of debt financing where the debt can later be converted into equity. In MARA’s case, these notes are due in 2030 and are issued at a 0% interest rate. The utilized funds allowed the company to focus on Bitcoin purchases while avoiding high interest payments.
MARA's Bitcoin Reserves and Market Position
With the latest acquisition, MARA's total Bitcoin reserves amount to approximately 34,794 BTC, valued at $3.306 billion at the current price. This strategy of Bitcoin acquisition mirrors a broader trend in the industry, as seen with companies like MicroStrategy.
While MARA’s strategy of acquiring Bitcoin through convertible notes has been effective, it carries risks associated with the volatility of cryptocurrencies.
