Marathon Digital and Hut 8 Invest $2 Billion in Bitcoin

• Marathon Digital acquires 15.574 BTC and leads reserves in the US.
• Hut 8 surpasses Tesla and accumulates more than 10.000 BTC.
• Bitcoin price surpasses $100.000 after institutional buying.

Marathon Digital Holdings and Hut 8, two of the biggest names in the Bitcoin mining industry, have announced massive acquisitions of the cryptocurrency. The purchases, made at a time when BTC’s value has fallen by more than 5%, total more than 16.000 Bitcoins, equivalent to approximately US$2 billion. The acquisitions bolster the companies’ strategic reserves and highlight the growing role of institutions in the consolidation of the cryptocurrency market.

The HODL Top 60 List 👇 12/18/2024 $HUT became the 4th public company to HODL 10,000+ Bitcoin on the Balance Sheet pic.twitter.com/AGElSRDlOy

— HODL15Capital 🇺🇸 (@HODL15Capital) December 19, 2024

Marathon Digital led the charge, acquiring 15.574 BTC at an average price of $98.529 per unit, totaling $1,53 billion. To fund this transaction, the company raised $1,925 billion through 0% convertible notes. Additionally, it used $263 million of these funds to repurchase part of the notes due in 2026. With the acquisition, Marathon now holds 44.394 BTC, valued at $4,45 billion, and plans to use the remaining $132 million to expand its reserves. The company's Bitcoin yield also stands out, with 22,5% in the quarter and 60,9% year-to-date.

MARA raised $1.925 billion from 0% convertible notes in November and December. Using the proceeds from its zero-coupon convertible notes offerings, MARA has acquired 15,574 BTC for ~$1.53 billion at ~$98,529 per #bitcoin and repurchased ~$263 million in aggregate principal amount… pic.twitter.com/ycGRk9BYfv

— MARA (@MARAHoldings) December 19, 2024

In turn, Hut 8 acquired 990 BTC, at an average cost of $101.710 per unit, in an investment of $100 million. This purchase increased its strategic reserves to more than 10.000 BTC, valued at more than $1 billion. The Canadian company now ranks fourth among public companies with the largest amount of Bitcoin in reserve, surpassing even Tesla. Hut 8 CEO Asher Genoot stated that the strategy of increasing the Bitcoin reserve is essential to align operations and drive growth initiatives.

Hut 8 today announced the purchase of approximately 990 Bitcoin for approximately $100 million, or an average of approximately $101,710 per Bitcoin. Combined with the Bitcoin held prior to this purchase, Hut 8's strategic Bitcoin reserve now totals more than 10,000 Bitcoin with a… pic.twitter.com/BhgCNMMEJu

— Hut 8 (@Hut8Corp) December 19, 2024

These moves came amid a recovery in Bitcoin’s price, which once again surpassed the $100.000 mark, reaching $102.390 amid a 25% increase in trading volume. These developments reflect increased institutional adoption and renewed interest in cryptocurrencies as store-of-value assets.

Furthermore, companies like MicroStrategy continue to lead this trend, accumulating significant Bitcoin reserves with strategies similar to those of Marathon and Hut 8. Data shows that these acquisitions have the potential to further boost the price of BTC in the future.

At the time of publication, the price of Bitcoin was quoted at US$99.664,84, up 4.4% in the last 24 hours.

The debt-issuing strategy to acquire Bitcoin, popularized by Michael Saylor, reflects the confidence of companies like Marathon and Hut 8 in the long-term value of the cryptocurrency. However, these initiatives also face challenges, such as market volatility and regulatory issues related to mining.