Bitcoin mining companies MARA and Hut 8 have acquired more than 16,500 bitcoins in a $1.63 billion investment.

MARA and Hut 8, two major publicly traded Bitcoin mining companies, Announce Big Bitcoin Acquisitions on December 19, 2024. MARA added 15,574 BTC for $1.53 billion, bringing its reserves to 44,394 BTC, worth over $4.4 billion. Hut 8 purchased 990 BTC for $100 million, increasing its holdings to 10,096 BTC, worth over $1 billion. The two companies are now among the largest holders of Bitcoin globally.

MARA financed its acquisitions through two offerings of convertible notes in November and December, to lift $1.925 billion. The first, issued on November 21, raised $1 billion of bonds due in 2030 at a premium of 42.5% above the trading price. The second, on December 4, raised $850 million with a 40% premium for bonds due in 2031. MARA also repurchased $263 million of existing convertible bonds due in 2026. Tripled Its Bitcoin reserves this year, up from 15,174 Bitcoin at the end of 2023.

Hut 8 CEO Asher Guinot male Bitcoin reserves strengthen the company’s financial foundation and support growth in energy and digital infrastructure. Its reserve ranks among the top 10 Bitcoin holders worldwide. Despite their announcements, shares of MARA and Hut 8 fell more than 5% and about 7%, respectively, amid a market-wide crypto sell-off.

Other companies have joined this trend. Riot Platforms added $510 million worth of Bitcoin in December after issuing bonds. MicroStrategy, the largest Bitcoin holder, purchased 15,350 BTC for $1.5 billion, bringing its total holdings to 439,000 BTC, worth more than $45 billion. Michael Saylor, president of MicroStrategy, emphasized the long-term value of Bitcoin, likening it to prime real estate.

In related news, a US federal judge ruled against BiT Global’s attempt to block Coinbase from delisting wrapped bitcoin (wBTC). The court found no evidence of imminent harm, allowing Coinbase to move forward.

Bitcoin mining requires enormous energy and advanced technology, and is therefore dominated by large companies such as MARA and Hut 8. The companies are taking advantage of the current market landscape, and are building reserves despite the recent drop in the price of Bitcoin to $97,951. This strong accumulation reflects confidence in the asset’s long-term value as more companies integrate Bitcoin into their financial strategies.