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Marathon Digital Buys $618M in Bitcoin Near Record High, Shares Jump

Amid Surge in Mining Profits, Marathon Digital Expands Bitcoin Treasury With Record Purchase

  • Marathon Digital acquires 6,484 Bitcoin for $618 million at average price of $95,352 per BTC
  • Company becomes second-largest corporate Bitcoin holder with $3.3 billion in holdings
  • Plans to raise additional $700 million through private offerings
  • Stock price rises 1.9% following acquisition announcement
  • Company intends to use new funding for debt repurchase and Bitcoin acquisition

Marathon Digital has acquired 6,484 Bitcoin for $618 million in cash, positioning itself as the second-largest corporate Bitcoin holder, according to a recent SEC filing.

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Strategic Acquisition Timing

The Florida-based mining company executed the purchase at an average price of $95,352 per BTC, including fees and expenses. The timing coincides with Bitcoin’s recent price surge, which peaked above $98,000 before settling near $95,000, based on CoinGecko data.

Market Response

The acquisition has resonated positively with investors, as Marathon’s stock (NASDAQ: MARA) rose 1.9% during European trading hours on Monday, recovering from Friday’s 2% decline when it closed at $26.85.

Additional Funding Initiative

Marathon announced plans to raise up to $700 million through private offerings to institutional buyers. According to the SEC filing, the company will allocate:

  • Up to $50 million for repurchasing existing 2026 convertible notes
  • Remaining funds for Bitcoin acquisition and general corporate purposes

Corporate Bitcoin Holdings

The purchase elevates Marathon’s Bitcoin treasury to $3.3 billion, securing its position as the second-largest corporate Bitcoin holder. However, it remains far behind MicroStrategy/”>MicroStrategy’s holdings of nearly $37 billion in Bitcoin.

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Historical Context

This acquisition follows Marathon’s November 2023 initiative, where the company announced an $850 million convertible note offering with potential expansion to $1 billion, demonstrating a consistent strategy of leveraging debt instruments to expand its Bitcoin position.

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