Recent projections that Marathon Digital Holdings were set to increase its convertible debt offering from $700 million to $850 million have come to fruition, helping the company’s share prices leap to $18.5, a 2.4% increase.
This comes at a time when Bitcoin is performing at never-before-seen levels thanks to increased adoption and usage.
Crypto adoption among the world’s leading brands including Amazon, PayPal, and Tesla has seen cryptocurrencies becoming used for more than just investment opportunities.
The proliferation of crypto-gambling sites has also been instrumental in its popularity. The multi-billion dollar online gambling industry in the US is strictly regulated, with online casino operations prohibited in all but seven states. This has led to increased use of offshore facilities.
Offshore online casinos offer a way for US citizens to access the best gambling sites without breaking the law, and according to crypto casino expert Gary McLellan, the top Bitcoin casino options offer a raft of benefits including easy international transfers, reduced fees, and enhanced security. Still, the winnings obtained from such platforms are subject to US taxes, so Bitcoin players need to bear that in mind.
These applications are set to expand in 2025, and Marathon’s continued involvement in Bitcoin mining has seen its assets of roughly 25,945 BTC rise in value to $2.3 billion.
Marathon Digital Holdings
Marathon Digital Holdings, Inc. was formed in 2010, undergoing several different name changes including Verve Ventures, American Strategic Minerals Corporation, and Marathon Patent Group.
Previously used as a patent holding company, the company changed directions in 2021 and became involved in the procurement of Bitcoin mining equipment and Bitcoin purchases.
The company is headquartered in Fort Lauderdale, Florida, and completed an expansion in 2023 by acquiring two Bitcoin mining sites for just under $180 million.
The company has courted some controversy in the past, with a Time magazine piece in July 2024 investigating them following complaints from Texan residents over noise and health concerns allegedly related to nearby mining facilities.
The company’s convertible note offering was upsized by $150 million to facilitate the purchase of more Bitcoin. These notes will mature in 2030 and only institutional buyers will be able to purchase them in private offerings.
Noteholders will have the option of selling them for cash to Marathon Digital Holdings Inc. in 2027. The sale is estimated to generate $833 million with almost $200 million going towards the repurchase of convertible notes that are set to mature in 2026, with the rest going towards Bitcoin acquisition.
Bitcoin’s Recent Upturn
Bitcoin has been riding high on its highest-ever value, exceeding $94,300 and rising by 35% since the start of November. One of the biggest reasons that Bitcoin is on the verge of breaking through the $100,000 barrier for the first time in its history is because of the recent Presidential election.
Donald Trump’s successful campaign included a pro-crypto stance, helping to boost Bitcoin and other crypto stocks. Predictions that he will ease crypto regulations have sparked interest from all quarters and underlined a new financial and political acceptance in the US.
President-elect Trump is also set to install the Whitehouse’s first crypto czar which will further bolster America’s intention to embrace cryptocurrencies and facilitate their growth.
However, Bitcoin’s success is not all down to politics as options trading swayed heavily towards Bitcoin. The equivalent of 35 million stock shares moved in just one day this week, with similar numbers the following day.
80% and 85% call volumes led to market sellers hedging their exposure and buying the exchange-traded fund (ETF), helping to drive Bitcoin’s price further.
As Bitcoin reaches its cap with around 20 million of the 21 million available already being mined, has helped to create scarcity and drive prices up.
Backers will be hoping that Bitcoin continues its upward trend, but even a drop in value of between 20-30% would still leave its value above previous highs and the market in great shape.
