Hold onto your hats, folks, because MARA, the crypto mining sensation formerly known as Marathon Digital, is on a Bitcoin shopping spree like no other. They've just added a cool 703 BTC to their stash, taking their total Bitcoin hoard to a whopping 34,797 BTC. That's a jaw-dropping $3.3 billion worth of digital gold!
This latest buy follows their earlier November splurge of 5,771 BTC, all part of a spending spree fueled by a hefty $1 billion convertible note offering. Talk about going big or going home!
These Bitcoin buys were made at an average price of $95,395 per coin, and MARA's got $160 million left in their treasure chest for future dips in Bitcoin prices. They also managed to scoop up some of their 2026 notes for $200 million, keeping their financial ship sailing smoothly.
The company wrapped up a $1 billion convertible senior notes offering due 2030 just last week. They plan to use a chunk of the proceeds to buy back their 2026 notes, with the rest earmarked for more Bitcoin buys and other corporate adventures.
And the fun doesn't stop there! MARA's got plans to issue another $700 million in convertible senior notes to qualified buyers, using the cash to redeem more 2026 notes and keep the Bitcoin party going.
With all this action, MARA's stock soared 7.81% to $26.92 on November 28, and they've seen a 42.13% boost in the past month. They're now rocking a market cap of $9 billion!
MARA's borrowing-to-buy strategy is reminiscent of MicroStrategy's game plan, which has been stacking Bitcoin using corporate debt since 2020. MicroStrategy recently issued $3 billion in senior convertible notes to snag more BTC, bringing their stockpile to 386,700 BTC.
Of course, this approach isn't without its critics, who argue that buying Bitcoin with borrowed money is a risky gamble, especially if prices take a tumble. But MicroStrategy's not sweating it just yet, with no repayment obligations until 2028, giving them plenty of time to weather any market storms.
So, whether you think MARA's a maverick or a maniac, there's no denying they're making waves in the crypto world. Stay tuned to see where this rollercoaster ride takes them next!
