Bitcoin Falls, It's Time For Two Mining Companies To Buy Tens Of Thousands Of BTC

Bitcoin prices fell after the announcement of the Fed's flower rate cuts. (Photo; Doc. Digital Trends)

JAKARTA - Two leading Bitcoin mining companies from the United States, Marathon Digital Holdings (MARA) and Hut 8 Mining, recently bought up tens of thousands of Bitcoins.

On Thursday 19 December 2024, the two announced a massive purchase of Bitcoin. MARA bought 15.574 BTC worth USD 1.53 billion (approximately IDR 24.8 trillion), while Hut 8 bought 990 BTC with a value of USD 100 million (approximately IDR 1.62 trillion).

The average purchase price of Bitcoin by MARA reached USD 98.529 (approximately IDR 1.6 billion) per BTC, while Hut 8 paid USD 101.710 (approximately IDR 1.65 billion) per BTC. Both of these companies chose to buy Bitcoin at BTC prices slumped by more than 5% following the Fed's announcement.

To fund this acquisition, MARA managed to raise $1.925 billion through the issuance of interestless conversion bonds. Now, the total Bitcoin MARA holdings have jumped to 44,394 BTC, with a value of around US$4.45 billion (around Rp72 trillion). Throughout this year, MARA recorded a profit from BTC of 60.9%.

On the other hand, Hut 8 also strengthened its position by increasing Bitcoin's strategic reserves to more than 10,000 BTC, which is currently worth more than $1 billion.

The massive purchases of the two Bitcoin mining companies took place amid Bitcoin price volatility, which is currently trading at around 99,508 US dollars (or around Rp1.61 billion) per BTC.

In the last 24 hours the price of Bitcoin slumped 2.1% according to CoinGecko data. However, trading volume increased 25% over the same period, pointing to high interest in the market.

Not only MARA and Hut 8, a number of other companies such as MicroStrategy also continue to add to their Bitcoin portfolio. MicroStrategy recently purchased 15,350 BTC worth 1.5 billion US dollars (around Rp. 24.3 trillion), total Bitcoin ownership increased to 439,000 BTC.