MARA Holdings Purchases $1.1 Billion in Bitcoin, Sets New Industry Record with 50 EH/s Hashrate

Bitcoin mining giant MARA Holdings Inc. has made a significant move in the crypto space, purchasing an additional 11,774 Bitcoin for $1.1 billion, while also achieving a groundbreaking milestone with its hashrate surpassing 50 exahashes per second (EH/s)—the first-ever instance of a public Bitcoin miner reaching this level.

Major Bitcoin Purchase and Treasury Expansion

On December 10, MARA announced the purchase of nearly 12,000 Bitcoin at an average price of $96,000 per coin, funded through a zero-coupon convertible note offering launched in late November. This move adds to the company’s growing Bitcoin reserves, bringing its total holdings to 40,435 Bitcoin, valued at approximately $3.92 billion based on current market prices around $97,000.

MARA's aggressive Bitcoin acquisition strategy is part of its broader approach to building a strong treasury. The company has reported a 12.3% Bitcoin yield in Q4 and an impressive 47.6% yield year-to-date, demonstrating the value of its growing Bitcoin assets. The “BTC Yield” metric measures the percentage change between its Bitcoin holdings and its fully diluted shares outstanding, serving as a key performance indicator for investors.

Since July, MARA has adopted a new treasury policy similar to that of MicroStrategy, retaining all Bitcoin it mines and leveraging various capital market instruments to expand its Bitcoin holdings. This shift is reflective of the company's commitment to increasing its Bitcoin reserves and positioning itself as a major player in the industry.

Reaching 50 EH/s and Looking Ahead

Alongside its Bitcoin purchases, MARA has also achieved a significant technical milestone. The company reported reaching a hashrate of 50 EH/s by the end of 2024, making it the first public Bitcoin miner to achieve this feat. Hashrate is a key metric in Bitcoin mining, representing the computational power dedicated to solving cryptographic puzzles and securing the network.

“We’ve hit our target, but why stop here?” said Fred Thiel, CEO of MARA, in response to the announcement. He hinted at further expansion, adding, “We have more miners on the shelf, and we will just keep on adding using our existing capacity.” As of the third quarter of 2024, MARA’s hashrate stood at 36.9 EH/s, meaning it has added at least 13.1 EH/s in just a few months.

Market Reaction and Stock Performance

Despite the positive news, MARA’s stock closed down 4.4% on December 10, ending the day at $22.81. The company’s stock has seen a slight recovery in after-hours trading, up just over 1%. Year-to-date, MARA's stock is down by 0.55%, although it had been one of the best performers in the Bitcoin mining industry during 2023, seeing a massive 586% increase in value as Bitcoin prices surged.

Bitcoin, which reached an all-time high of $104,000 on December 5, has since experienced a 6.6% decline, trading at around $97,090 as of December 10. Despite this pullback, MARA’s continued investment in Bitcoin and mining infrastructure underscores its long-term strategy of building substantial digital asset reserves and increasing its market share in the competitive Bitcoin mining space.

Looking to the Future

With its latest Bitcoin purchase and new hashrate milestone, MARA Holdings continues to solidify its position as a leader in the Bitcoin mining industry. The company’s aggressive expansion strategy and commitment to retaining mined Bitcoin suggest it will remain a key player in the space, poised for further growth as the Bitcoin market continues to evolve. As the industry moves forward, all eyes will be on MARA to see how it capitalizes on its increasing computational power and expanding digital asset reserves.