Marathon Digital Expands Bitcoin Holdings by $249 Million

Marathon Digital has recently expanded its Bitcoin holdings by purchasing an additional 4,144 BTC for approximately $249 million, funded through a $300 million senior note offering. This acquisition boosts the company's total Bitcoin reserves to over 25,000 BTC, as it reinforces its commitment to a 'full HODL' strategy, which involves retaining all mined Bitcoin. Despite the positive news, Marathon's stock has seen a nearly 34% decline year-to-date, reflecting challenges in the mining sector amid rising energy costs and reduced profitability following the recent Bitcoin halving. The convertible senior notes, set to mature in 2031, bear a 2.125% interest rate, and the company plans to use remaining funds for further Bitcoin purchases and corporate purposes. Experts have raised concerns about the risks of leveraging debt to acquire Bitcoin, especially as the cryptocurrency market faces volatility. Marathon's CEO, Fred Thiel, emphasized the long-term potential of Bitcoin as a reserve asset and the company's strategy to support the digital asset ecosystem.