Marathon Digital issued zero-coupon convertible bonds to buy BTC, while MicroStrategy's successful model is more suitable for small companies

The largest publicly listed BTC miner Marathon Digital completed a $1 billion convertible note issuance this month and acquired 6,474 BTC. Its total BTC holdings now stand at 34,794, worth approximately $3.3 billion (at $95K). MicroStrategy's success has made BTC financial strategies more widely accepted, but analysts believe this model is more suitable for small companies.

Marathon Digital buys Bitcoin with zero-coupon convertible bonds

Marathon Digital announced at the end of July that it is adopting a comprehensive HODL strategy, not only fully retaining its own Mining BTC, but also purchasing an additional $100 million worth of BTC. In August, it began to emulate MicroStrategy by issuing convertible senior notes (commonly known as convertible bonds) through private sale to qualified institutional buyers to purchase additional BTC for general corporate purposes.

(Mining company Marathon announced a HODL strategy, buying an additional 100 million BTC, and issuing convertible bonds)

Marathon Digital issued $1 billion in zero-coupon convertible bonds in November, of which $615 million was used to buy BTC in batches, purchasing a total of 6,474 BTC at an average price of $95,395 per BTC. Another $200 million was used to repurchase a portion of the 2026 notes, and the remaining proceeds will be used to buy BTC at a future date when the price is low.

Mining company Marathon Digital is the second largest holder of BTC among publicly traded companies, second only to MicroStrategy.

The micro-strategy success model is more suitable for small companies.

Anchorage Digital CEO and Co-Founder Nathan McCauley said in an interview with The Block:

Including BTC in the balance sheet was once a reality that only encryption circle insiders could achieve; now, due to the bright prospects after the election, BTC has become mainstream. As the gate begins to open, it is expected that more and more listed companies will consider BTC as a reserve asset.

Alexander Blume, CEO of Two Prime Digital Assets, also stated:

The success of MicroStrategy makes BTC financial strategies more easily acceptable to other public institutions, and I suspect that more strategies will emerge in the near future. Taking action early pays off.

Despite the fact that tech giant Microsoft has included 'evaluation of investing in BTC' as a shareholder voting item on the agenda of the December 10 annual meeting, Bernstein analysts believe that although large tech companies have a substantial amount of cash to allocate to BTC, considering their dominant positions in their respective core businesses, BTC may just be a side note.

However, small companies with excess cash and weak core businesses can follow the micro-strategy model. MicroStrategy has a four-year track record, including surviving and taking full advantage of opportunities in the harsh bear market in 2022/23.

(Several companies are vying to use BTC as asset reserves, are they focusing on their core business or trying to make a comeback)

This article Marathon Digital issues zero-coupon convertible bonds to buy BTC, and the micro-strategy successful model is more suitable for small companies first appeared on Chain News ABMedia.