Mara Acquires $1.5B in Bitcoin, Plans Further Purchases

Marathon Holdings, a prominent Bitcoin infrastructure firm, has made a substantial acquisition of Bitcoin worth $1.5 billion. The company purchased 15,574 BTC for an estimated $1.53 billion, financed through the proceeds of a 0% convertible note offering, which raised nearly $2 billion between November and December. According to a filing with the Securities and Exchange Commission (SEC) on December 19, Marathon acquired this latest batch of Bitcoin at an average price of $98,529 per coin.

This acquisition brings Marathon’s total Bitcoin holdings to 44,394 BTC, which is valued at approximately $4.45 billion based on Bitcoin’s current price of $100,151. Additionally, Marathon disclosed it had used around $263 million of the proceeds to buy back its convertible notes, with the remaining funds—around $132 million—intended for future Bitcoin purchases.

Marathon’s move is part of a broader trend among Bitcoin-focused companies, such as Hut 8 and Riot, who have adopted a strategy pioneered by Michael Saylor, the executive chairman of MicroStrategy. This strategy, often referred to as the “infinite money glitch,” involves issuing debt in the form of convertible notes to raise capital, which is then used to acquire Bitcoin. As Bitcoin’s price increases, these companies report gains from their BTC holdings, which can then be reinvested into further Bitcoin acquisitions.

While this strategy has drawn comparisons to a Ponzi scheme, with critics warning that it could collapse if Bitcoin’s price were to fall sharply, Saylor has defended the approach by likening Bitcoin to prime real estate in New York, claiming that it will appreciate indefinitely. MicroStrategy, where Saylor serves as chairman, has pledged to purchase $42 billion worth of Bitcoin by 2028, with Saylor himself stating that he has no plans to sell any of the Bitcoin the company acquires.

Marathon’s aggressive expansion of its Bitcoin holdings further solidifies its position as one of the largest corporate Bitcoin holders globally, and it continues to align itself with the Bitcoin acquisition strategies popularized by Saylor and other crypto-focused companies. As Bitcoin’s price continues to rise, Marathon, like other BTC-centric firms, aims to benefit from this appreciating asset, even as it navigates the complexities of the broader crypto market.