Marathon Digital Bitcoin Holdings Surge with $850M Note Offering; MARA Stock Soars 59%

MARA Holdings, in a recent press release on Tuesday, December 4, disclosed that Marathon Digital has completed its $850 million convertible note offering at 0% interest, the proceeds of which shall go for additional Bitcoin purchases. The company also sold an additional $150 million option to initial purchasers for purchase within 13 days following the issuance.

The notes were sold privately to qualified institutional buyers. MARA Holdings noted that it will use approximately $48 million of the proceeds to repurchase roughly $51 million in existing convertible notes due 2026. The remaining proceeds will go towards the purchase of BTC and other operational expenses.

The announcement comes just as BTC hit the $100K milestone earlier today. There are speculations that Bitcoin may soon hit $125,000 by year-end amidst the bullish run. 

MARA Stock Surge Amid Bitcoin Bullish Momentum

The MARA Stock has seen strong buying interest ever since Donald Trump’s victory last month. The stock price is up by a massive 59% on a monthly chart. Some market analysts believe that considering the current situation, MARA is better than MSTR for future gains.

Notably, Marathon Digital has added 6,484 bitcoins just between October 1 and November 30, 2024, according to a Securities and Exchange Commission filing. This brings Marathon’s total bitcoin stash to 34,959 as of November 30. Marathon’s hoard is still far behind that of uber bitcoin stockpiler MicroStrategy, which holds 279,420 bitcoins as of November 10, 2024.

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Institutional Bitcoin Inflows and 2025 Forecast

Just yesterday, President-elect Donald Trump officially nominated Paul Atkins to be the next SEC Chair, following which the flagship crypto surpassed the crucial $100,000 level. Following the unprecedented surge for the leading cryptocurrency, $870 billion asset manager Standard Chartered Bank says that Bitcoin will double to reach $200,000 in 2025.

Analyst Geoff Kendrick underscored that institutional buyers have acquired 683,000 BTC year-to-date through U.S. Bitcoin ETFs, along with contributions from MicroStrategy, Marathon Digital, etc. Remarkably, 245,000 bitcoins of these inflows occurred following the U.S. presidential election.

“In 2025, we expect institutional flows to continue at or above the 2024 pace,” stated Kendrick. “MicroStrategy is running ahead of its USD 42bn three-year plan, so its purchases in 2025 should match or exceed its 2024 purchases,” he added.