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Marathon Digital Holdings Buys $249 Million Worth of Bitcoin

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3 months ago

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Marathon Digital Holdings, one of the largest publicly traded Bitcoin miners, purchased $249 million more worth of Bitcoin. This latest acquisition expands Marathon’s corporate bitcoin treasury to over 25,000 BTC.

On August 12th, Marathon announced a $250 million convertible note offering to raise funds for Bitcoin purchases. The notes were met with strong demand, allowing Marathon to upsize the deal to $300 million.

The company then used $249 million of the proceeds to accumulate 4,144 additional Bitcoin at an average price of $59,500 per Bitcoin. This boosts Marathon’s Bitcoin reserves to over 25,000 BTC worth nearly $1.5 billion.

In July, Marathon bought $100 million of Bitcoin on the open market as part of its long-term “hodl” strategy. The Nasdaq-listed miner aims to hold newly mined coins rather than sell them.

Marathon is aggressively expanding its Bitcoin stash by mimicking MicroStrategy’s corporate playbook. Other firms, such as Semler Scientific and Metaplanet, are also raising money in debt markets to buy more Bitcoin and ride its adoption curve. 

These savvy public companies are using the fiat system’s cheap lending rates to accumulate scarce Bitcoin. This demonstrates Bitcoin’s growing conviction that it is the best strategic reserve asset for public companies. 





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Donald Trump Proposed Crypto Advisory Council To Set Up Strategic Bitcoin Reserve

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1 day ago

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November 21, 2024

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Donald Trump plans to establish an advisory council to position the U.S. as a leader in the cryptocurrency space. The council will spearhead policy changes, coordinate with Congress on crypto legislation, and oversee the creation of a strategic Bitcoin reserve.

The advisory council will also operate under the White House’s National Economic Council or a similar executive body. Industry executives have revealed that the council will collaborate with federal agencies like the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and the Treasury to streamline regulatory frameworks for the crypto industry.

Donald Trump To Establish Bitcoin Reserve Amid Crypto Council Formation

According to a recent report, Donald Trump’s crypto advisory council will advise on digital asset policies and oversee the creation of a strategic Bitcoin reserve. The reserve aims to position Bitcoin as a core element of the United States’ economic strategy. This will enhance the nation’s leadership in the global crypto space.

The council will work with Congress to draft legislation and coordinate between agencies such as the SEC, CFTC, and Treasury. The initiative seeks to establish clear regulatory guidelines within the crypto sector. More so, the idea of a Bitcoin reserve reflects a commitment to integrating blockchain technology into national economic frameworks.

Additionally, the move comes amid rising discussions on why the United States should consider Bitcoin as part of its national reserves, particularly in light of countries like El Salvador and Bhutan already adopting it. Advocates like Anthony Pompliano stress the urgency for the U.S. to act to maintain its leadership in the evolving digital economy.

Industry Leaders Compete for Seats on Trump’s Crypto Council

Several players in the industry, including Ripple, Kraken, Coinbase, and Circle, are vying for a position on Donald Trump’s council. These companies aim to influence the administration’s approach to crypto regulation and advocate for pro-industry policies. Executives from Paradigm and Andreessen Horowitz’s crypto arm, a16z, are also expected to play key roles in shaping the council.

Ripple and Circle, represented by their executives, have already expressed interest in contributing to the council. Circle CEO Jeremy Allaire recently emphasized the importance of building a robust, crypto-friendly infrastructure under Trump’s administration. Industry leaders hope this council will bring an end to enforcement actions seen under the previous administration.

Most recently, Cardano founder Charles Hoskinson endorsed Coinbase CEO Brian Armstrong for the potential White House crypto role under Donald Trump’s administration. Hoskinson praised Armstrong’s neutrality and deep understanding of the crypto industry, emphasizing his ability to guide regulatory progress.

Meanwhile, this major push comes as the current SEC Chair, Gary Gensler, announced he is set to resign on January 20, 2025, coinciding with Donald Trump’s inauguration as U.S. President. Ripple’s CLO, Stuart Alderoty, emphasized the need for a new Chair who will establish clear rules for crypto. 

Notably, former regulators, including Heath Tarbert, former CFTC Chair and now Circle’s chief legal officer, and Brian Quintenz, a16z’s head of policy, are reportedly advising Donald Trump’s transition team. These individuals bring extensive regulatory experience to the development of the Crypto Council and its proposed Bitcoin reserve.

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Poland Presidential Candidate Calls for Bitcoin Reserve In Election Pitch

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5 days ago

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November 18, 2024

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Poland Presidential Candidate Slawomir Mentzen has recently pitched for a strategic Bitcoin Reserve as part of his election pitch. Drawing a leaf from Donald Trump’s victory in the US presidential election, global leaders have joined the bandwagon. Bitcoin investor Mentzen eyes a similar paradigm shift in Polish elections as BTC price a massive rally over $93,000.

Poland Eyes Strategic Bitcoin Reserve Like United States

In a post on the X platform on November 19, Slawomir Mentzen, the Polish presidential candidate of the KORWiN party, demanded that Poland create its own strategic Bitcoin reserve. Interestingly, Mentzen also proposed having crypto-friendly regulations along with support from the national banks for building this reserve. He wrote:

“If I become the President of Poland, our country will become a cryptocurrency haven, with very friendly regulations, low taxes, and a supportive approach from banks and regulators. BTC to the Moon!”

Election in Poland will tentatively happen around May 2025, and hence a Bitcoin push early on could lead to a shift in the course of elections in the coming months. Although Slawomir Mentzen is the candidate of a smaller party, he can gain significant ground with this BTC push.

Several market analysts think that the Bitcoin Game Theory will soon play out among nation-states, creating a snowball effect in no time. In the United States, top Bitcoin leaders like Michael Saylor, and Cynthia Lummis have started pitching President-elect Donald Trump about the importance of having a BTC reserve, and how it can reduce the US national debt by a staggering $16 trillion.

It is clear that leaders across nation-states have started seeing Bitcoin as a crucial reserve asset similar to gold. Senator Cynthia Lummis also proposed that state-federal banks sell some of the gold and use the proceeds to buy BTC.

Słamowir Mentzen Is A Bitcoin Businessman

Amid the strategic Bitcoin Reserve pitching reports, Polish Presidential candidate Slamowir Mentzen revealed that he had invested all his money into Bitcoins a decade before in 2013.

“In 2013, I bought cryptocurrencies with all the funds I had. I went all-in and did very well, but that was 2013,” he said during a conversation on a YouTube channel run by Filip Kowiarski. Furthermore, he also addressed accusations of pursuing others to buy BTC or providing any similar advice. In his interview, he said:

“I have been holding Bitcoins for years, I have been holding cryptocurrencies. I bought them back in 2013, at the beginning of this year I sold a little bit (…), but I hold the vast majority. Some people accuse me of trying to sell cryptocurrencies and saying: buy them. I am absolutely not trying to sell cryptocurrencies to anyone, I have not bought any cryptocurrencies for years, it is a very risky investment”.

BTC Price to Rally Over $100K?

As of press time, the Bitcoin price is trading at $90,547, with a market cap of $1.791 billion. Several market analysts predict BTC will hit $100K by the year-end, however, bulls seem to be taking a wait-and-watch approach. BTC rallied over 32% in a month

Popular crypto analyst Rekt Capital stated that the Bitcoin top hasn’t arrived yet and there’s still 3-4 weeks of rally ahead before calling a top as per the historical trends.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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MicroStrategy's Bitcoin Strategy Won't Work As Well for Other Companies

Published

1 week ago

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November 15, 2024

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Look, I am not an expert in public markets, but raising money to buy more Bitcoin seems to be the obvious new alpha for public companies.

MicroStrategy pioneered this strategy, and now, 4 years later, it’s the most compelling and successful story in corporate finance. Microstrategy has been the best-performing stock in the last 4 years, beating every US company, including NVIDIA. That’s crazy, right? All thanks to Bitcoin.

I am sure the CFOs of most public companies are now looking at MicroStrategy and analysing how they turned a $1 billion company into a $70 billion empire in just 4 years, and they are thinking about how they can do the same.

Here’s the playbook:

Use Profits, Equity and Debt to buy more Bitcoin. And tell the world about it loudly.

But let’s be real — MicroStrategy’s Bitcoin playbook won’t pump stock prices forever, at least not for other public companies. The arbitrage opportunity is closing rapidly as more firms adopt similar strategies.

MicroStrategy enjoys first mover advantage and guru status with Michael Saylor. New corporate BTC buyers lack that credibility and cult following with Bitcoiners. The impact diminishes with each new adopter.

Bitcoin’s growth is slowing, too. Doing a 5x annually gets harder as the marginalized rising competition for a somewhat fixed BTC supply spells diminishing relative returns.

Let’s also remember — today’s investors can get Bitcoin exposure easier than when MicroStrategy started. ETFs and funds reduce the impact of new companies holding BTC directly.

All this means the MicroStrategy playbook is closing fast for public companies. Firms considering it must act quickly to maximize gains before the strategy gets overplayed.

To be clear, I’m incredibly bullish on corporations adopting BTC treasury reserves. It’s just that early movers will benefit the most. The impact will wane over time for new adopters.

And of course, regardless of time, companies will continue to benefit from adopting this strategy as the Bitcoin price continues to increase forever.

This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.



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