Marathon Digital Prepares for $850 Million of Bitcoin Purchase, $125,000 BTC Ahead?

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As a seasoned crypto investor with a knack for spotting trends and opportunities, I find myself increasingly optimistic about the future of Bitcoin, particularly given the recent developments surrounding Marathon Digital (MARA). The company’s strategic $850 million convertible note offering at 0% interest, aimed at purchasing more Bitcoin, is a bold move that aligns with my belief in Bitcoin’s potential as a long-term investment.

Marathon Digital, a Bitcoin miner listed on NASDAQ (MARA), has just finished an $850 million offering of convertible notes with 0% interest. This money will be used to buy more Bitcoins. This announcement comes right after BTC broke through the $100,000 mark earlier today, setting a new record high. There’s been talk in the market that BTC could reach $125,000 by the end of the year, as part of the upcoming holiday rally.

Marathon Digital Closes $850 Million Offering

On Tuesday, December 4, Bitcoin mining firm Marathon Digital (NASDAQ: MARA) declared the completion of its $850 million offering of convertible notes with zero percent interest. Additionally, they offered an extra $150 million option to initial buyers, which could be exercised within a 13-day window following the issue date.

In simpler terms, MARA Holdings announced that they had privately sold some of their notes to suitable institutional investors. They plan to utilize around $48 million from this sale to buy back approximately $51 million in their existing convertible notes maturing in 2026. The remaining funds will be used for purchasing Bitcoin and covering other operational costs.

Following the announcement that a Bitcoin miner has sped up its Bitcoin acquisition strategy, Marathon Digital is taking cues from MicroStrategy and raising funds for purchasing more Bitcoin.

Ever since Donald Trump’s election victory last month, there’s been intense buying activity surrounding the MARA stock. As shown on its monthly chart, the price has surged an astounding 59%. Following yesterday’s investment, the stock saw a 6% increase during the pre-market trading session on Thursday, potentially aiming to break through the $27 mark. Some financial analysts speculate that given the current circumstances, MARA may prove more profitable than MSTR for future returns.

Bitcoin to $125,000 By Year End?

This afternoon, the price of Bitcoin surpassed the $100,000 threshold shortly after Donald Trump announced Paul Atkins as the new US SEC chairman. Currently, BTC is trading 6.68% higher at around $102,675, and its market capitalization has exceeded $2 trillion.

According to predictions made by Standard Chartered back in September, Bitcoin’s price could potentially reach $125,000 by year-end. Now, they’re anticipating even greater institutional investment in Bitcoin throughout the year 2025.

This year, institutional investors have significantly impacted the movement of Bitcoin, and this trend is likely to persist as per Geoff Kendrick, the head of research at Standard Chartered. In a recent report, Kendrick predicted that Bitcoin could possibly touch $200,000 by the end of 2025, given its recent jump over $100,000.

It’s worth mentioning that a significant amount of Bitcoin, approximately 683,000 units, has been bought by institutional investors so far this year through U.S. Bitcoin ETFs, in addition to purchases made by companies like MicroStrategy and Marathon Digital, among others. Interestingly, around 245,000 bitcoins were acquired after the U.S. presidential election.

According to Kendrick in 2025, institutional investments are projected to keep up with or surpass the level seen in 2024. The focus has shifted towards Microsoft’s shareholder decision regarding adopting MicroStrategy’s approach to Bitcoin investment.

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2024-12-05 15:30