Marathon Digital’s CEO, Fred Thiel, hinted at the possibility of purchasing more Bitcoin through convertible notes in the future. The company recently acquired $100 million worth of Bitcoin, increasing its total holdings to over 20,000 BTC. Thiel mentioned that they could buy more of the flagship cryptocurrency from the open market when conditions are favorable for their shareholders.
Thiel emphasized that they would make strategic acquisitions of Bitcoin periodically and follow a full HODL (Hold On for Dear Life) strategy. He described Bitcoin as “the world’s best treasury reserve asset” and encouraged governments and corporations to hold Bitcoin as a reserve asset.
It’s not surprising that Marathon Digital is eager to acquire more Bitcoin, considering it is the largest mining company globally. The firm had previously purchased $150 million worth of Bitcoin in January 2021, demonstrating its interest in the digital asset beyond mining operations.
When asked about how future purchases would be financed, Thiel suggested using convertible notes, a financing tool the company was familiar with. Convertible debt allows investors to convert their debt into equity later, usually at a discount to the share price at conversion. This method enables companies to raise capital without immediately diluting shareholder value.
MicroStrategy, another company that has embraced convertible notes, has been making frequent Bitcoin purchases over the past year. They currently hold over 200,000 BTC, making them the largest corporate Bitcoin holder.
Thiel’s hint at potential Bitcoin purchases through convertible notes indicates Marathon Digital’s continued interest in expanding its Bitcoin holdings. By utilizing this financing strategy, the company can acquire more Bitcoin while managing its capital costs effectively. As the cryptocurrency market continues to evolve, Marathon Digital’s approach to strategic acquisitions and treasury management will be closely watched by industry observers.