In another interesting Bitcoin news, Mara Holdings, Inc. has purchased a staggering 11,774 Bitcoin for $1.1 billion raised via Convertible Senior Notes. Notably, these convertible notes are set to mature in 2030.
MARA’s latest move is part of the firm’s broader strategy to strengthen its position as a key player in the fast-growing yet volatile crypto industry.
Mara Holdings and Latest BTC Bet
Earlier today, MARA revealed it had raised over $1 billion by offering 0% convertible senior notes for this latest Bitcoin acquisition. The firm mentioned that nearly $980 million of the notes were raised in net proceeds.
Notably, $199 million will go toward repurchasing $212 million in outstanding 2026 convertible notes.
The rest of the funds will fuel a notable increase in the company’s Bitcoin reserves or for debt reduction. This decision will boost MARA Holdings and position it at the forefront of the digital asset market.
Interestingly, these convertible notes offer a unique structure as they carry no regular interest. Also, it can be convertible into cash, MARA common stock, or a mix of both.
The company mentioned that the conversion price is $25.91 per share.
This is a premium offering aimed at attracting qualified institutional buyers under Rule 144A of the Securities Act. MARA’s growing Bitcoin investment signals confidence in the cryptocurrency’s long-term value.
Corporate Bitcoin Acquisition Is Growing
MARA’s latest strategy mirrors the global trend of corporate Bitcoin acquisition. Companies like MicroStrategy, Metaplanet, Semler Scientific, and Genius Group are leading the way.
Recent data revealed that public companies now hold over 527,026 BTC, 2.66% of the global circulating supply.
This follows an aggressive buying spree amid a volatile week for the world’s largest cryptocurrency. MicroStrategy, a pioneer in this space, has made Bitcoin a central part of its treasury reserve strategy since 2020.
Since then, the company has aggressively accumulated over 400,000 BTC by funding its purchases through cash reserves, debt, and equity sales.
Its aggressive Bitcoin acquisition strategy to hedge against inflation and currency devaluation has set a precedent for others like Metaplanet and MARA to follow.
Semler Scientific has taken a more conservative approach, using Bitcoin for diversification and risk management within the medical technology sector.
Meanwhile, Genius Group, an ed-tech company, sees Bitcoin as part of its broader strategy to embrace emerging technologies.
Each company’s approach to Bitcoin may vary, but they share a common goal: leveraging its potential for long-term growth.
Will This Bitcoin News Revive the BTC Price?
MARA’s purchase comes when many wonder if its acquisition will help revive Bitcoin’s market price and Bitcoin news positivity.
This comes as large institutional investments often lead to more interest from other companies and investors, which can drive up demand. When demand increases, the price tends to rise as well.
On December 5, Bitcoin’s price dropped sharply from a peak of nearly $104,000 to $92,980 in just a few hours.
Reportedly, the $10,000 fall was caused by a leverage-induced liquidation, which wiped out $900 million in long positions. According to Coinglass data, this affected about 163,587 traders.
At the time of writing, Bitcoin is priced at $95,634.88, down by 2.28% in the last 24 hours, according to market data.
Its inability to retest its all-time high (ATH) highlights how external factors can significantly impact its market value. While the interest from corporate players is a positive sign, it remains to be seen whether it will have a lasting effect on Bitcoin’s price.
