Marathon Digital goes big on Bitcoin

Plus, what’s behind Bitcoin's recent price crash?

Author

Daniel Akpobare
August 16, 2024

 

GM Explorer,

Let’s delve into Marathon Digital Holdings' big business move!

They secured $300 million through convertible senior notes offering and promptly used a significant portion to acquire 4,144 BTC.

Here’s what we got for you today:

  • 💰 Marathon Digital goes big on Bitcoin!

  • 🤔 What’s behind Bitcoin's recent price crash?

  • 🧱 Around The Block: BlackRock overtakes Grayscale as the largest crypto fund manager.

💰 Marathon Digital Goes Big on Bitcoin!!

Marathon Digital Holdings, the largest publicly listed Bitcoin miner on Wall Street, recently wrapped up a $300 million offering of convertible senior notes, and it was a big success!

After deducting initial purchasers' discounts and commissions, they raked in around $292.5 million in net proceeds.

And what did they do with that hefty sum? 

They used a large chunk of it to buy Bitcoin. Between August 12 and August 14, 2024, they snapped up approximately 4,144 Bitcoin for $249 million, at an average price of $59,500 per Bitcoin, fees included.

As for the remaining proceeds, it will go towards more Bitcoin acquisitions and general corporate purposes, such as potential strategic acquisitions and debt repayment.

This bold move shows the growing trend of companies investing heavily in Bitcoin regardless of its price volatility.

Other miners like HIVE Digital and TeraWulf also report strong quarterly performances!

HIVE Digital disclosed a whopping quarterly revenue of $32.2 million, with the majority ($29.6 million) coming from digital currency mining.

Meanwhile, TeraWulf shattered records with a Q2 2024 revenue of $35.6 million, marking a 130.2% increase compared to the same period last year.

Want to know more? Then, click here!

🤔 What’s Behind Bitcoin's Recent Price Crash?

Bitcoin's price is dropping once again. Within just 24 hours, it has taken a 3.6% dip and is now under $57,000.

That's a whole 4% loss for the week!

But here's the thing:

While Bitcoin is struggling, the stock market seems to be doing the exact opposite—the S&P 500 is showing a 2% increase, and the NASDAQ is up 0.6%.

So, what's causing Bitcoin's crash? 

It’s possibly because the US Government moved 10,000 Bitcoins (equivalent to around $570 million) from a known wallet to a Coinbase Prime deposit wallet.

And as if that wasn't enough, BitGo also moved $2 billion worth of Mt. Gox Bitcoins, igniting fears of more selling pressure.

As a result of Bitcoin's crash, the derivatives market has seen a staggering $200 million in liquidations, with Ethereum traders getting hit the hardest.

They faced a brutal $70 million in losses alone!

To add to the woes, Ethereum's price has also taken a 4.6% hit in the past 24 hours.

So yeah, this has undeniably been a tough day for crypto enthusiasts, leaving many wondering if they'll ever witness a full-fledged alt season again!

All we can say is that only time will tell, and we hope the big companies and the government know what they're doing.

You should definitely read the full report for more insights!

🧱 Around The Block

That's all we've got for you today.

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Catch you soon.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions.

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