On December 19, 2024, two prominent publicly traded Bitcoin mining companies, MARA and Hut 8, reported large Bitcoin acquisitions. MARA’s reserves now total 44,394 BTC, valued at nearly $4.4 billion, after adding 15,574 BTC for $1.53 billion. For $100 million, Hut 8 acquired 990 Bitcoin, bringing its total holdings to 10,096 Bitcoin. That is worth more than $1 billion. These businesses now have some of the most Bitcoin worldwide.
In November and December, MARA raised $1.925 billion through two convertible note offers to finance its acquisitions. With notes due in 2030 at a 42.5% premium over the trading price. The first, which was issued on November 21, raised $1 billion. On December 4, the second one raised $850 million for notes maturing in 2031 at a premium of 40%. Additionally, MARA bought back $263 million in convertible notes that were due in 2026. The company’s Bitcoin reserves increased from 15,174 BTC at the end of 2023 to over triple this year.
According to Asher Genoot, CEO of Hut 8, the Bitcoin reserve promotes expansion in electricity and digital infrastructure. Hence fortifying the company’s financial base. Among the top 10 corporate Bitcoin holders globally is its reserve. Amid a market-wide cryptocurrency sell-off, MARA and Hut 8 shares fell more than 5% and almost 7%. Respectively, in spite of their announcements.
This trend has been adopted by other businesses. After issuing bonds, Riot Platforms added $510 million in Bitcoin in December. The biggest corporate Bitcoin holder, MicroStrategy, paid $1.5 billion for 15,350 BTC. Increasing its total holdings to 439,000 BTC, which is worth more than $45 billion. Michael Saylor, the chairman of MicroStrategy, highlighted Bitcoin’s long-term worth by comparing it to luxury real estate.
In related news, BiT Global’s attempt to prevent Coinbase from delisting Wrapped Bitcoin (WBTC) was unsuccessfully challenged by a U.S. federal judge. Since there was no indication of impending damage, the judge let Coinbase move forward.
Large companies like MARA and Hut 8 dominate the Bitcoin mining industry since it requires a lot of electricity and sophisticated technology. Despite Bitcoin’s recent decline to $97,951, businesses are taking advantage of the current market conditions and increasing their reserves. As more businesses include Bitcoin in their financial strategies, this rapid accumulation shows trust in the asset’s long-term value.
