MicroStrategy and MARA Holdings Continue to Buy More Bitcoin

MicroStrategy has purchased $1.5 billion worth of Bitcoin, while Marathon Digital Holdings is raising $700 million to extend its Bitcoin purchases. 

MicroStrategy’s acquisition adds 15,400 bitcoins to its portfolio, bringing its total holdings to 402,100. The company now owns nearly 2% of the capped 21 million bitcoin supply.

Public Companies Continue an Extensive Trend of Bitcoin Purchases

This purchase further extends MicroStrategy’s lead as the largest corporate Bitcoin holder. In November alone, the company purchased over $12 billion worth of BTC. The latest acquisition was completed at an average price of $95,976 per bitcoin. 

Despite this move, MSTR stock prices fell nearly 1% during Monday trading. However, its year-to-date gains have mirrored Bitcoin’s performance, surging by nearly 500% so far this year. This rally recently placed MicroStrategy among the top 100 public companies in the US. 

MicroStrategy (MSTR) Stock Performance Throughout 2024. Source: TradingView

Since its first Bitcoin purchase in 2020, Saylor has advocated for companies to use Bitcoin as a treasury reserve asset. He also recently suggested Microsoft’s board of directors and its CEO Satya Nadella to invest in Bitcoin, saying that Microsoft should be powered by digital capital. 

Earlier in October, Microsoft’s board urged its shareholders to vote against a proposal that suggested that the company diversify its portfolio through Bitcoin. 

“There’s a pretty low supply of Bitcoin over the counter, so you have a supply shortage, and if Bitcoin moves above $100,000, there will be a big chase. I’m still confident that Bitcoin is going to close much higher before year-end, well above $100,000. It’s just a matter of time,” Entrepreneur Thomas Less said on CNBC today. 

Meanwhile, Bitcoin mining firm Marathon Digital Holdings (MARA) announced a $700 million private offering of 0% convertible senior notes due in 2031. The offering, subject to market conditions, will target institutional investors under the Securities Act.

The notes, classified as unsecured senior obligations, will not bear interest. At the company’s discretion, they may be converted into cash, MARA common stock, or a combination of both.

MARA plans to allocate $50 million from the proceeds to general corporate purposes, including Bitcoin purchases, capital expenditures, and other growth initiatives. Additionally, part of the funds will go toward repurchasing its 2026 convertible notes to optimize its capital structure.

These developments highlight the growing interest in Bitcoin as a strategic asset among publicly traded companies. These firms are demonstrating an extremely bullish outlook for the leading cryptocurrency. Pantera Capital even predicted BTC to reach $740,000 by 2028. 

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