- Marathon Digital acquired 15,574 BTC worth $1.53 billion, funded by zero-coupon convertible notes.
- Hut 8 bought 990 BTC for $100 million, bringing its total Bitcoin reserves to 10,096 BTC.
- Institutional demand for Bitcoin increases, with supply on centralized exchanges dropping by 140,000 BTC.
Marathon Digital Holdings and Hut 8 Mining Corp have made significant Bitcoin acquisitions amid the recent market correction. On December 19, the companies announced a combined purchase of over 16,000 BTC, valued at $1.6 billion. These acquisitions underscore the growing institutional interest in the flagship cryptocurrency.
Marathon Leads With Massive Bitcoin Purchase
Marathon Digital emerged as the leader, acquiring 15,574 BTC at an average price of $98,529 per coin, amounting to $1.53 billion. Marathon financed this acquisition through proceeds from zero-coupon convertible notes issued in November and December. Of these funds, $263 million was used to repurchase existing convertible notes due 2026, while $1.53 billion was deployed to secure BTC. Marathon’s year-to-date Bitcoin yield reached an impressive 60.9%.
Hut 8 acquired 990 BTC for $100 million, paying an average price of $101,710 per Bitcoin. The increase brought Hut 8’s total reserves to 10,096 BTC, exceeding $1 billion in value. The acquisition established Hut 8 as the fourth public company to surpass 10,000 BTC holdings.
CEO Asher Genoot highlighted the importance of Hut 8’s strategic BTC reserve in aligning capital and operational strategies. The company believes this reserve fortifies its financial position and supports growth across power and digital infrastructure initiatives.
Impact of Institutional Bitcoin Investments
The rising demand for Bitcoin among institutions reflects a broader trend of hedging against inflation and fiat devaluation. On-chain data reveals a significant decrease in BTC supply on centralized exchanges, with a reduction of 140,000 BTC in the last 30 days.
This institutional interest and decreasing BTC availability have created a supply-demand imbalance. Analysts predict continued price growth for BTC, reinforcing its appeal as a strategic reserve asset for corporations like Marathon Digital and Hut 8.
The moves by Marathon Digital and Hut 8 mirror strategies popularized by MicroStrategy’s Michael Saylor, focusing on large-scale BTC accumulation. Marathon, now holding over $4.4 billion in BTC, is eyeing inclusion in the Nasdaq 100 Index, reflecting its growing prominence.
Hut 8’s strategic reserve also signifies its commitment to long-term growth. With BTC increasingly integrated into corporate treasuries, the cryptocurrency’s role in financial systems is set to expand. These developments showcase how BTC remains pivotal for companies navigating economic uncertainties.
Read More: MARA Holdings Purchases $1.1 Billion in Bitcoin, Expands Market Leadership
