In a strategic move amidst a recent downturn in the cryptocurrency market, two major publicly listed Bitcoin mining firms in the United States, Marathon Digital Holdings (MARA) and Hut 8 (HUT), have made substantial investments in Bitcoin (BTC). On December 19, 2024, both companies took to X (formerly Twitter) to announce their significant purchases of Bitcoin, with MARA acquiring 15,574 BTC valued at approximately $1.53 billion, and Hut 8 acquiring 990 BTC worth $100 million.
Bitcoin Mining Giants Invest $2 Billion in BTC
Marathon Digital Holdings (MARA) made a noteworthy investment by purchasing Bitcoin at an average price of $98,529 per BTC. Meanwhile, Hut 8 secured its Bitcoin at a slightly higher average price of $101,710 per BTC. MARA raised $1.925 billion through 0% convertible notes in November and December, strategically utilizing these funds to bolster its Bitcoin holdings. The company’s recent acquisition has elevated its total Bitcoin reserves to 44,394 BTC, valued at an impressive $4.45 billion. This strategic move has enabled MARA to achieve a remarkable BTC yield of 22.5% quarter-to-date (QTD) and 60.9% year-to-date (YTD).
On the other hand, Hut 8’s latest purchase significantly enhances its strategic Bitcoin reserve, which now exceeds 10,000 BTC, worth over $1 billion at the time of writing. The firm continues to strategically position itself within the cryptocurrency market, emphasizing its commitment to long-term growth and resilience amidst market fluctuations.
Impact of $2 Billion Bitcoin Purchase on BTC Price
The substantial Bitcoin purchases by MARA and Hut 8 occurred during a period when the BTC price experienced a decline of over 5%. However, their buying activity has contributed to pushing the BTC price back above the significant $100,000 threshold. According to data from Coinmarketcap, BTC is currently trading near $102,390, with a 1.56% price decline in the past 24 hours. Despite this slight dip, the trading volume has surged by 25%, reflecting increased engagement from traders and investors.
This is not an isolated event of U.S. publicly listed firms investing in Bitcoin. Previously, companies such as MicroStrategy and Semler Scientific have made substantial BTC acquisitions, indicating a growing trend of adoption and interest in the cryptocurrency market. Current data suggests that these ongoing accumulations by major firms could potentially drive further increases in the BTC price in the near future.
