Bitcoin miner Marathon Digital (NASDAQ: MARA) has recently completed its $850 million convertible note offering at 0% interest, the proceeds of which shall go for additional Bitcoin purchases. The announcement comes just when BTC’s price smashed past the $100K milestone earlier today hitting a new all-time high. Speculations have started pouring in for BTC price to hit $125,000 by the year-end as part of the Christmas rally.
Marathon Digital Closes $850 Million Offering
Bitcoin miner Marathon Digital (NASDAQ: MARA) announced the closure of its $850 million convertible note offering at 0.0% interest, on Tuesday, December 4. Apart from the principal notes, the company also sold an additional $150 million option granted to initial purchasers for purchase within a 13-day period following the issuance.
The notes were sold privately to qualified institutional buyers. MARA Holdings stated that it will use approximately $48 million of the proceeds to repurchase roughly $51 million in existing convertible notes due 2026. The remaining proceeds will go towards the purchase of BTC and other operational expenses.
The development comes soon after the Bitcoin miner announced accelerating its Bitcoin buying plan. Drawing a leaf from the playbook of MicroStrategy, Marathon Digital is making similar moves of fundraising to source its BTC purchases.
The MARA Stock has seen strong buying interest ever since Donald Trump’s victory last month. On the monthly chart, the stock price is up by a massive 59%. Following yesterday’s investment, the stock has gained an additional 6% in the pre-market trading session on Thursday, eyeing a move above $27. Some market analysts believe that considering the current situation, MARA is better than MSTR for future gains.
Bitcoin to $125,000 By Year End?
Earlier today, the Bitcoin price smashed past the $100K milestone soon after Donald Trump announced the appointment of Paul Atkins as the next US SEC chair. As of press time, BTC is trading 6.68% up at $102,675 with its market cap crossing $2 trillion.
This shows that Bitcoin price is very much on the trajectory to $125,000 by the year-end, as predicted by Standard Chartered earlier in September. However, the banking giant now predicts that institutional inflows into Bitcoin can surge further in 2025.
Bitcoin flows have been heavily influenced by institutional investors this year, a trend that is expected to continue, according to Geoff Kendrick, head of research at Standard Chartered. In a recent note, Kendrick suggested that BTC could potentially reach $200,000 by the end of 2025, following its recent surge past $100,000.
He also highlighted that institutional buyers have acquired 683,000 BTC year-to-date through U.S. Bitcoin ETFs, along with contributions from MicroStrategy, Marathon Digital, etc. Notably, 245,000 bitcoins of these inflows occurred following the U.S. presidential election.
“In 2025, we expect institutional flows to continue at or above the 2024 pace,” said Kendrick. All eyes are now on Microsoft’s shareholders’ vote on whether or not they would adopt MicroStrategy’s Bitcoin playbook.
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