Marathon parks $1.1b in Bitcoin after note sale

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As a seasoned crypto investor with a knack for spotting trends, I find the recent Bitcoin (BTC) purchasing spree by companies like Marathon Holdings and Riot Platforms quite intriguing. The increasing adoption of the Bitcoin Standard among U.S.-based entities is reminiscent of the dot-com boom, where every company had to have a .com in their name!

Following the successful convertible note transaction, Bitcoin mining company Marathon Holdings now holds approximately $3.9 billion worth of Bitcoin in its entirety.

Marathon Holdings purchased approximately 11,774 Bitcoins (worth about $1.1 billion) for an average price of around $96,000 per Bitcoin. This announcement was made by the Florida-based company specializing in blockchain infrastructure on December 10th. With current prices at around $96,500 per token, Marathon Holdings’ total Bitcoin holdings are now valued at nearly $4 billion. At the time of press, BTC was trading slightly above $98,000 after a significant liquidation event on Monday, December 9th.

Marathon secured funds for purchasing Bitcoin through the sale of convertible notes, a practice increasingly adopted by businesses establishing Bitcoin reserves. These investors purchase the notes using cash and are granted equity shares as a result. In turn, the companies utilize the obtained funds to procure Bitcoins.

Michael Saylor’s widely adopted approach now includes a novel way of evaluating a corporation’s Bitcoin acquisition effectiveness, which is referred to as “BTC Yield.” This metric calculates the percentage fluctuations in Bitcoin holdings in relation to the total number of outstanding and diluted company shares.

Marathon revealed that it had a Bitcoin return of 12.3% within the current quarter and 47.6% since the beginning of the year, as of December 9th. Furthermore, companies are considering offering Bitcoin rewards to shareholders, thereby strengthening the bond between cryptocurrency and corporate finance.

In the past seven days, Mastercard’s treasury activities generated a Bitcoin return of 3.3%. This translates to roughly 13,270 Bitcoins benefiting shareholders, which is equivalent to about 1,896 Bitcoins daily. Given that each Bitcoin is worth around $98,000, this represents a weekly income of approximately $1.3 billion or $186 million per day.

— Michael Saylor⚡️ (@saylor) December 10, 2024

In the meantime, mining competitor Riot Platforms intends to buy Bitcoins using the funds raised from its $500 million convertible note sale. Saylor has commended both Marathon and Riot for embracing the Bitcoin Standard, indicating a rising interest in Bitcoin among U.S. entities.

MicroStrategy headed a group of businesses trading equity for Bitcoin capital. Since 2020, Saylor’s company has purchased approximately $25 billion in Bitcoin by selling securities and borrowing money. Moreover, MicroStrategy possesses more than $40 billion in Bitcoin, making it the largest private holder of the digital asset.

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2024-12-10 18:10