MARA Holdings Buys $1 Billion in Bitcoin
Bitcoin mining giant MARA Holdings announced the purchase of 11,774 Bitcoin worth $1.1 billion on Dec. 10, while achieving a groundbreaking milestone with its hashrate surpassing 50 exahashes per second (EH/s), a first for the industry.
The company disclosed the Bitcoin acquisition in a Dec. 10 post on X, revealing that the coins were purchased at an average price of $96,000 each following a zero-coupon convertible note offering in late November.
As of Dec. 9, MARA’s total Bitcoin holdings stood at 40,435 BTC, valued at $3.92 billion at the current market price of approximately $97,000.
According to a Dec. 9 filing with the United States Securities and Exchange Commission, MARA reported a 12.3% “BTC Yield” for the fourth quarter and a 47.6% yield for the year.
This metric measures the percentage change between MARA’s Bitcoin holdings and its assumed fully diluted shares outstanding, reflecting the company’s performance.
In July, MARA adopted a new treasury policy to retain all mined Bitcoin and utilize various capital market instruments to increase its Bitcoin reserves.
This strategy mirrors MicroStrategy’s well-known Bitcoin investment approach.
MARA also announced it had doubled its energized hashrate in 2024, reaching an end-of-year target of 50 EH/s. This achievement makes MARA the first publicly listed Bitcoin miner to cross this threshold.
“Mission accomplished … but why stop here,” said MARA’s CEO Fred Thiel in response to the announcement on X. He added, “Stay tuned as we have more miners on the shelf and we will just keep on adding using our existing capacity.”
The company’s hashrate had been 36.9 EH/s at the end of the third quarter, indicating a growth of at least 13.1 EH/s since then.
Despite these achievements, MARA’s stock closed down 4.4% at $22.81 on Dec. 10, with a slight after-hours gain of just over 1%, according to Google Finance.
For the year, MARA’s stock is down 0.55%, following a 586% surge in 2023 during the industry’s market rebound.
At the time of writing, Bitcoin was trading at $97,090, reflecting a 6.6% decline from its all-time high of $104,000 reached on Dec. 5.
Sources:
https://cointelegraph.com/news/mara-buys-more-bitcoin-crosses-hashrate-milestone
https://x.com/MARAHoldings/status/1866467993183543461
https://www.sec.gov/ix?doc=/Archives/edgar/data/1507605/000149315224049365/form8-k.htm
https://x.com/MARAHoldings/status/1866467993183543461
https://x.com/MARAHoldings/status/1866563646236569685
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