Marathon Digital, one of the largest publicly traded bitcoin mining companies in the U.S., is seeking to raise $250 million through a new debt offering to acquire additional bitcoin. This move follows the company’s acquisition of $100 million worth of bitcoin in July and increases its total bitcoin holdings to over 20,000.
Despite the substantial investment, Marathon Digital’s stock experienced a decline on Monday, falling to $15.64 per share, an 8.10% drop according to Nasdaq data. In contrast, bitcoin, the leading cryptocurrency, rose above $59,000, showing positive momentum after a challenging previous week.
Marathon Digital is not alone in integrating bitcoin into its balance sheet. Similar strategies have been adopted by companies such as Tesla, led by Elon Musk, fintech firm Fold, and health sector company Semler Scientific. Among public companies, Marathon’s bitcoin holdings are second only to those of MicroStrategy.
Crypto analyst George Tung from CryptosRUs highlighted the significance of Marathon’s investment. “They bought nine figures worth of bitcoin in July alone,” Tung remarked.
Marathon Digital appears to be following the successful example set by MicroStrategy, which has seen its stock value increase by over 1,000% since adopting a pro-bitcoin strategy in August 2010. NYDIG, a bitcoin financial services firm, reported that MicroStrategy achieved a 1,089% return on its stock, compared to bitcoin’s 461% rise since 2020.
The future of Marathon Digital’s bitcoin accumulation and its impact on the company’s overall mining expansion strategy remains to be seen.
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