MARA Holdings, the world's largest publicly traded Bitcoin miner, has significantly expanded its cryptocurrency reserves by purchasing 6,474 Bitcoins worth approximately $615 million.
Purchase Details
According to the latest announcement, this acquisition brings the company’s total bitcoin holdings to 34,794 BTC, worth approximately $3.3 billion. The average purchase price was $95,395 per Bitcoin. The latest purchase included an additional 703 BTC purchased following the initial acquisition of 5,771 BTC made last week. The funding was sourced through a $1 billion offering of 0% convertible senior notes due 2030. MARA plans to allocate approximately $199 million of the raised funds to repurchase existing convertible notes due 2026, while the remaining proceeds, approximately $160 million, are earmarked for further Bitcoin purchases and corporate initiatives.
Market Impact and Stock Performance
MARA shares closed up 7.81% at $26.92 on Wednesday. The stock has gained 42.13% in the past month and is up 17.4% year-to-date with a current market cap of $9 billion. MARA’s strategic Bitcoin purchases come amid a wave of high-profile investments in the cryptocurrency by public companies.
Broader Market Context
Earlier this month, another institutional bitcoin giant, MicroStrategy, purchased 55,500 BTC for approximately $5.4 billion, bringing its total holdings to 386,700 BTC. Chinese firm SOS Ltd. announced plans to invest $50 million in Bitcoin, sending its stock price up 42.88% on Wednesday.
The acquisitions by MARA Holdings, along with the actions of other large players, highlight the growing interest in Bitcoin by institutional investors and the potential impact of these investments on the cryptocurrency market.
