As a seasoned analyst with over two decades of experience in the financial markets, I find myself intrigued by MARA Holdings’ bold move to acquire 15,574 BTC for $1.53 billion. With my extensive background in understanding market trends and corporate strategies, it is clear that this move aligns with a strategy popularized by MicroStrategy’s Michael Saylor – large-scale Bitcoin accumulation.
In simpler terms, MARA Holdings, a company that mines Bitcoins, revealed it acquired 15,574 Bitcoins worth approximately $1.53 billion, increasing its total Bitcoin holdings to 44,394. This makes MARA Holdings the publicly-traded corporation with the most Bitcoin reserves in its possession.
Bitcoin Miner MARA Buys 15,574 BTC for $1.53 Billion
In a report to the SEC and a post on X (formerly Twitter), MARA announced that the acquisition was funded using funds from its recent zero-coupon convertible notes offerings. Additionally, they stated they had bought back approximately $263 million in total value of their existing convertible notes maturing in 2026. The remaining funds from the notes will be used to purchase more Bitcoin.
In November and December, MARA successfully secured $1.925 billion through the sale of zero-coupon convertible notes with a 0% interest rate. The funds raised from these offerings were used by MARA to buy approximately 15,574 Bitcoins at an average price of around $98,529 per Bitcoin, totaling roughly $1.53 billion. Additionally, they repurchased a total of about $263 million in principal amount using the same funds.
— MARA (@MARAHoldings) December 19, 2024
The company made public that they purchased Bitcoins for an average cost of approximately $96,000 per Bitcoin. Additionally, they noted a quarter-to-date return of 12.3% and a year-to-date gain of 47.6% on their Bitcoin holdings. This deal now adds 40,435 Bitcoins to their possession, valued at around $3.9 billion based on current market values.
The move is reminiscent of a strategy popularized by MicroStrategy’s Michael Saylor, focused on large-scale Bitcoin accumulation. Saylor recently stated he sees MARA Holdings entering Nasdaq 100 Index soon.
Buying Spree After the Price Drop
Yesterday, it was revealed that MARA had made a purchase, but shortly before this announcement, Federal Reserve Chairman Jerome Powell explained that, as things stand now, the central bank is not allowed to possess Bitcoin due to current rules, and there are no plans to change these laws to allow for such ownership.
The news broke at a time when markets were experiencing a significant drop. Bitcoin saw a 5% decrease, marking its steepest fall over the past three months, primarily due to the Federal Reserve’s hawkish stance on interest rates and their suggestion that there might not be any rate cuts in 2025. This announcement ignited a broader market sell-off.
Initially, it came close to reaching a value of $100,000, but ultimately did not, due to factors such as Powell’s hawkish opinions and uncertainty about its potential function as a reserve currency for Bitcoin.
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2024-12-19 16:39