Marathon Digital and Hut 8 Acquire Over 16,000 Bitcoin Worth $2 Billion
Chandan Gupta19 Dec 20242 min read
In a recent market dip, the United States publicly listed Bitcoin mining firms, Marathon Digital Holdings (MARA) and Hut 8 (HUT), made billion-dollar investments in BTC. On December 19, 2024, MARA Holdings and Hut 8 shared posts on X (formerly Twitter), announcing that they had purchased 15,574 BTC worth $1.53 billion and 990 BTC worth $100 million, respectively.
Bitcoin Mining Giants Invest $2 Billion in BTC
However, MARA Holdings purchased these notable amounts of Bitcoin at an average price of $98,529 per BTC, whereas Hut 8 acquired theirs at an average price of $101,710 per BTC.
The post on X also mentioned that MARA raised $1.925 billion through a 0% convertible note to fund this significant BTC purchase. With the latest acquisition, the firm’s holdings have soared to 44,394 BTC, worth approximately $4.45 billion. To date, MARA has achieved an impressive BTC yield of 22.5% quarter-to-date (QTD) and 60.9% year-to-date (YTD).
On the other hand, with the recent purchase, Hut 8’s strategic Bitcoin reserve now exceeds 10,000 BTC, worth over $1 billion at press time.
How are nations and institutions fueling Bitcoin adoption? What does it mean for the future? Read Bitcoin price prediction to find out!
Impact of $2 Billion Bitcoin Purchase on BTC Price
These notable BTC purchases by these mining giants were made during a period when the BTC price had declined by over 5%. This buying activity has once again pushed the BTC price above the $100,000 mark.
Currently, BTC is trading near $102,390 and has experienced a price decline of 1.56% in the past 24 hours. During the same period, its trading volume has surged by 25%, indicating heightened participation from traders and investors.
This is not the first time that U.S. publicly listed firms have bought BTC. Earlier, MicroStrategy, Semler Scientific, and others made substantial BTC purchases, indicating the increasing rate of adoption and rising interest. Data suggests that these ongoing accumulations could significantly propel the BTC price in the coming days.
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