Marathon Holdings Restocked Over $1.5B Worth of Bitcoin (BTC) Using Proceeds from Its Convertible Note Offering

Bitcoin (BTC) infrastructure firm Marathon Holdings acquired 15,574 BTC for an estimated $1.53 billion after raising nearly $2 billion through a 0% convertible

Bitcoin (BTC) mining firm Marathon Holdings has disclosed another round of BTC purchases, revealing that the company used proceeds from its convertible note offering to stash more Bitcoin. Marathon Holdings acquired 15,574 BTC, valued at approximately $1.53 billion based on prevailing market prices, with an average acquisition cost of $98,529 per Bitcoin.

The latest BTC purchase brings Marathon Holdings’ total Bitcoin stash to 44,394 BTC, valued at a mind-boggling $4.45 billion at the time of the disclosure, considering BTC was trading at $100,151. The company also disclosed about $263 million in note buybacks.

Marathon Holdings, a U.S.-based Bitcoin miner that went public in 2021, is now a major player in the crypto mining scene. The company has been aggressively expanding its mining operations and stashing BTC throughout 2022. Marathon Holdings is also known for its transparency, regularly disclosing its mining performance and financial updates.

The company offered two tranches of 0% convertible notes, due in 2028, in late 2022, aiming to raise up to $750 million. However, the offering was oversubscribed, and Marathon Holdings ended up raising nearly $2 billion. The notes are convertible into Class A common stock at a rate of 1,000 shares per $30 principal amount of the notes.

Marathon Holdings earlier disclosed that the proceeds from the note offering would be used for "general corporate purposes, including the purchase of additional digital assets." According to a Marathon post on X, the remaining note sale proceeds—about $132 million—will be used to buy more Bitcoin.

Several publicly traded BTC mining companies, including Marathon, Hut 8, and Riot, have adopted a fundraising strategy championed by Michael Saylor, the executive chairman of MicroStrategy and a former crypto skeptic turned Bitcoin evangelist.

The strategy, dubbed the "infinite money glitch" by some, entails raising capital by issuing debt in the form of dated share rights, which are then used to accumulate BTC. As the price of BTC rises, these companies can report BTC yield to showcase the performance of their investment strategy.

However, the approach has also drawn criticism from some analysts, including Jacob King, who maintains that MicroStrategy's strategy is unsustainable and could collapse if the price of Bitcoin experiences a sharp downturn.

In response to these critiques, Saylor has generally maintained that BTC is like New York real estate in its early days. According to the MicroStrategy chairman, Bitcoin, like New York property, will appreciate indefinitely, allowing companies to continue issuing debt to finance further BTC purchases.

MicroStrategy, led by Saylor, has already acquired over 135,000 BTC, and the company plans to continue buying BTC until 2028, aiming to stash a total of 420,000 BTC. Saylor has also stated that he never intends to sell the company's Bitcoin stash.