MicroStrategy and Marathon Digital Holdings | Next 2 Big players in Crypto?

2 weeks ago(edited)

Hello Readers,

We roam in this crypto world with an attitude that’s its a pure decentralised space and totally free from the rich people’s hands. But have we realised how many big financial institutions have already invested big amounts in this realm and secured a significantly large slice of pie already. In this ever-changing, sentimental and fast-forward world of cryptocurrency, many prestigious companies have grown enough interest to become as frontrunners in the race to acquire Bitcoin, 2 of them who are currently making some noise in the media are MicroStrategy and Marathon Digital Holdings (MARA).

Both of these companies are well-known international companies and as seen in recent times, both of them are making aggressive moves to expand their total Bitcoin holdings. This is one of the clear events that is signaling confidence in the cryptocurrency's future and long-term value. So in this post, let us explore the details behind and the future of Bitcoin and corporate investing in this post. So, of you are interested, lets us take a dive without any further ado.

MicroStrategy | The Largest Corporate Bitcoin Holder

If you are an enthusiast in this world and keep yourself upto date with whats happening in the world of crypto, then you must have heard of Microstrategy (MSTR) at least several times in the past already. MicroStrategy, led by co-founder Michael Saylor, is an US based Development company that deals with mobile software, cloud-based services and BI (business Intelligence). In the past, this company in the past has set a new standard for corporate Bitcoin investment by aggressively investing and holding Bitcoin, considering it as an asset class. Recently, the company made headlines by purchasing 15,400 Bitcoins for an overall $1.5 billion payment, bringing its total Bitcoin holdings to total 402,100. As we know the total max supply of Bitcoin is only 21 million and current circulation is around 29 million, their holding amount accounts for nearly 2% of Bitcoin’s capped supply of 21 million coins.

MicroStrategy’s Bitcoin Acquisition

Total Bitcoin Holdings - 402,100 BTC
Recent Purchase Amount - 15,400 BTC
Total Value of Recent Purchase - $1.5 billion
Average Purchase Price - $95,976 per Bitcoin
Stock Performance (YTD) - MSTR stock has moved nearly +500% in 2024

This enormous purchase of Bitcoin without a doubt makes a good ground for MicroStrategy as the largest corporate Bitcoin holder globally. Though despite this bold Bitcoin purchase move, the company’s stock price fell more than 1% durin trading, the company’s overall growth in past year clearly highlighting the market’s cautious response. However, the company’s year-to-date gain rate is also closely aligning with Bitcoin’s rise, which demonstrates the impact of this strategy.

Advocating for Bitcoin Adoption

Since MicroStrategy’s first decision of Bitcoin purchase back in 2020, Saylor has been seen taking a very positive approach for using Bitcoin as a treasury reserve asset. In the past, he even seen urging Microsoft’s CEO Satya Nadella to consider Bitcoin as an investment, further suggesting that Microsoft as a company should hold and leverage Bitcoin as “digital capital.” However, with an interesting turn, Microsoft’s board persons recently voted against a proposal to diversify its portfolio by adding Bitcoin, so Saylor’s advice has been critically challenged here, awaiting for the future to decide.

Saylor’s Bitcoin Prediction

Crypto industry experts including Saylor believe that Bitcoin could surpass and hopefully maintain a positive above $100,000 in future soon. The famous entrepreneur Thomas Less stating, “If Bitcoin moves above $100,000, there will be a big chase.”, I think so less people will remain confident that Bitcoin will close the year too much high above $100,000.

Marathon Digital Holdings

Now on the other hand, let us talk about Marathon Digital Holdings aka MARA and while MicroStrategy is focusing on buying Bitcoin as a corporate asset, Marathon Digital Holdings (MARA) is betting its all on mining the cryptocurrency. Recently, MARA has announced a whooping $700 million private offering of 0% convertible senior notes that will be due in year 2031. These notes are made specially for institutional investors, and these notes will provide a unique opportunity to convert debt into cash or stock without bearing any interest. So, let us take a look at its stats and records to find out more.

MARA’s Fundraising and Bitcoin Strategy

Total Fundraising Target - $700 million
Convertible Notes - 0% interest, due in 2031
Planned Allocation - $50 million for general corporate purposes, including Bitcoin purchases
Additional funds for capital expenditures and repurchasing 2026 convertible notes

Strategic Use of Funds

Marathon plans to allocate a portion of the proceeds 50 Million USD fund to invest in crypto sector - to purchase more Bitcoin, enhance mining capabilities and to optimise its current capital structure by repurchasing older debt. By doing this practice, Marathon is aiming to remain a major key player in the Bitcoin mining industry while positioning itself for future growth as Bitcoin’s value rises over time.

Corporate Confidence in Bitcoin

These bold moves by both MicroStrategy and Marathon Digital highlight a growing trend and a new financial migration where publicly traded companies are increasingly viewing Bitcoin and Financial institutes as a strategic asset. The surprising fact that these organisations are willing to invest even billions really underscores their confidence in Bitcoin’s future value.
What Experts Are Saying

Pantera Capital has predicted that Bitcoin could reach $740,000 by 2028.With limited supply and an ever-growing growing demand, some believe Bitcoin’s next big price surge is only a matter of time.

What It Means for Investors

For all of us small and big investors, these developments could signal significant opportunities in the crypto market. MicroStrategy’s stock has already surged thanks to its aggressive Bitcoin accumulation strategy, on the other hand, the Marathon’s ambitious fundraising also suggests confidence in future profitability. However, it is essential to remember that Bitcoin still remains a highly volatile asset, so invest wisely. Please note that this is not financial advice and DYOR before investing in crypto.