Marathon Digital leverages dual strategy to surpass mining goals and boost Bitcoin reserves Marathon Digital leverages dual strategy to surpass mining goals and boost Bitcoin reserves
Innovative use of convertible notes fuels Marathon's Bitcoin acquisition and mining expansion.
2 min read
Updated: Dec. 3, 2024 at 12:45 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Marathon Digital reported a record performance in its Bitcoin mining operations for November amid its ongoing commitment to acquiring the top crypto asset for its reserves.
In a Dec. 2 statement, the company revealed that its BTC production rose by 26% month-over-month to 907 BTC. Additionally, its energized hash rate surged 15% to reach 46.1 EH/s, marking significant growth since October.
The miner also reported the highest number of blocks mined in a single month, 254 blocks—an increase of 27% from October.
Marathon’s CEO Fred Thiel attributed these results to the successful deployment of new miners and improvements in operational efficiency. He emphasized that these achievements underscore the company’s leadership in the industry.
Bitcoin acquisitions
In a separate announcement, Marathon Digital disclosed plans to raise $700 million through a private offering of unsecured convertible senior notes due 2031.
The company explained that the notes would be converted into cash, MARA stock, or a combination of both. It added that it plans to allocate up to $50 million of the proceeds to repurchase part of its existing 2026 convertible notes, with the remainder directed toward acquiring more Bitcoin and supporting general corporate activities.
This follows Marathon’s $1 billion fundraising through a similar offering in mid-November, which enabled the purchase of 6,474 BTC, valued at approximately $615 million.
Thiel said that Marathon’s dual mining and acquiring Bitcoin strategy provides significant flexibility, allowing the company to capitalize on favorable market conditions. He added that this approach optimizes acquisition costs by buying during price declines and strengthens Marathon’s competitive edge by mining BTC at lower costs than the prevailing spot price.
As of Nov. 30, Marathon had acquired 12,965 BTC year-to-date at an average price of $77,692. In total, the company has mined 8,563 BTC, bringing its year-to-date BTC yield per share to 37.2%. Overall, the company holds 34,959 BTC, valued at $3.3 billion.
According to Bitcoin Treasuries data, Marathon is the second-largest public Bitcoin holder, behind only MicroStrategy.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
MicroStrategy
MicroStrategy (Nasdaq: MSTR) is a worldwide leader in enterprise analytics and mobility software.
Marathon Digital
Marathon Digital Holdings is a digital asset technology company that mines cryptocurrencies with a focus on the blockchain ecosystem and the generation of digital assets.
Fred Thiel is the CEO of Marathon Digital Holdings (NASDAQ:MARA), a digital asset technology company that mines cryptocurrencies with a focus on the blockchain ecosystem and the generation of digital assets.
