World’s largest Bitcoin miner announces $250M raise to buy more Bitcoin

Zoltan Vardai12 hours agoWorld’s largest Bitcoin miner announces $250M raise to buy more BitcoinThe new raise is part of Marathon’s strategy to go “full hodl” and make Bitcoin a strategic reserve asset for the company.3382 Total views5 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onMarathon Digital Holdings has announced a $250 million offering of convertibles senior notes due in 2031 in a private offering toward “qualified institutional buyers.”

Marathon, the world’s largest Bitcoin (BTC) mining firm, is also considering selling an additional $37.5 million in notes to initial purchasers based on market conditions.

Marathon aims to use the $250 million to acquire more Bitcoin, according to an Aug. 12 announcement:“MARA intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes, which may include working capital, strategic acquisitions, expansion of existing assets, and repayment of debt and other outstanding obligations.

The buying patterns of large Bitcoin holders, such as BTC miners, can have a significant impact on the Bitcoin price due to the large amount of capital involved. Investors often use the buying patterns of large institutions to gauge the demand for Bitcoin.

Related:Ether whale buys nearly $13M ETH, but ETH still needs to reclaim $2.7K for the next leg upMarathon Digital goes “full hodl” on Bitcoin as new reserve asset

Marathon has increased its Bitcoin holdings by $124 million during July, reaching a total of 20,818 BTC worth over $1.14 billion as of Aug. 6.

Marathon plans to go “full hodl,” which is crypto slang for “hold on for dear life,” Fred Thiel, CEO and chairman of Marathon Digital, announced in a July 25 X post:“Today Marathon is proud to announce that to strengthen our strategy of holding Bitcoin as our strategic treasury reserve asset, we have over the past month purchased $100 million in BTC, and will now go full HODL.”

Marathon acquired $100 million worth of Bitcoin in July, as it aims to make BTC a strategic treasury reserve asset, as reported by Cointelegraph.

Marathon’s Bitcoin strategy is a positive development, considering that the world’s largest Bitcoin miner isn’t capitulating despite a 50% cut in block rewards due to the 2024 Bitcoin halving, which could still force other miners to sell BTC.

Related:Tech giants losing momentum as AI progress disappoints investorsBitcoin remains below $60,000 due to stagnating ETF inflows

Despite the bullish announcement and continuous buying from Marathon, the Bitcoin price remains subdued under the $60,000 psychological mark.

Bitcoin fell over 1.2% during the past 24 hours to trade at $59,908 as of 11:52 am UTC. On the weekly chart, Bitcoin staged an over 16% recovery, according to CoinMarketCap data.BTC/USD, 1-day chart. Source: CoinMarketCap

Inflows into the United States-based spot Bitcoin exchange-traded funds (ETFs) also stagnated in the last week. The ETFs recorded $89 million worth of cumulative net outflows on Aug. 9, according to Farside Investors data.Bitcoin ETF flows (US dollars, million). Source: Farside Investors

Magazine:How Chinese traders and miners get around China’s crypto ban# Bitcoin# Mining# Bitcoin Price# Adoption# Bitcoin Mining# Mining PoolsAdd reaction