MARA and Hut 8, two major publicly traded Bitcoin mining firms, announced significant Bitcoin acquisitions on Dec. 19, 2024. MARA added 15,574 BTC for $1.53 billion, bringing its reserves to 44,394 BTC, worth over $4.4 billion. Hut 8 purchased 990 BTC for $100 million, increasing its holdings to 10,096 BTC, valued at over $1 billion. Both companies are now among the largest Bitcoin holders globally.
MARA financed its acquisitions through two convertible note offerings in November and December, raising $1.925 billion. The first, issued on Nov. 21, raised $1 billion with notes maturing in 2030 at a 42.5% premium over the trading price. The second, on Dec. 4, raised $850 million with a 40% premium for notes due in 2031. MARA also repurchased $263 million of existing convertible notes due in 2026. The company nearly tripled its Bitcoin reserves this year, up from 15,174 BTC at the end of 2023.
Hut 8’s CEO Asher Genoot stated that the Bitcoin reserve strengthens the company’s financial foundation and supports growth in power and digital infrastructure. Its reserve ranks among the top 10 corporate Bitcoin holders worldwide. Despite their announcements, MARA and Hut 8 shares dropped over 5% and nearly 7%, respectively, amid a market-wide crypto sell-off.
Other firms have joined this trend. Riot Platforms added $510 million worth of Bitcoin in December following a bond issuance. MicroStrategy, the largest corporate Bitcoin holder, purchased 15,350 BTC for $1.5 billion, bringing its total holdings to 439,000 BTC, valued at over $45 billion. MicroStrategy's chairman Michael Saylor emphasized the long-term value of Bitcoin, likening it to prime real estate.
In related news, a U.S. federal judge ruled against BiT Global's attempt to stop Coinbase from delisting wrapped Bitcoin (wBTC). The court found no evidence of imminent harm, allowing Coinbase to proceed.
Bitcoin mining requires immense energy and advanced technology, and it’s thus dominated by large firms like MARA and Hut 8. The companies are capitalizing on the current market landscape, building reserves despite Bitcoin’s recent price dip to $97,951. This aggressive accumulation reflects confidence in the asset's long-term value as more firms integrate Bitcoin into their financial strategies.