MicroStrategy and MARA allocate billions for Bitcoin investments

MicroStrategy has acquired an additional 15,400 Bitcoin (CRYPTO:BTC), increasing its total holdings to 402,100 BTC, nearly 2% of Bitcoin’s capped 21 million supply. 

This $1.5 billion purchase underscores the company's ongoing strategy to hold Bitcoin as a treasury reserve asset. 

The acquisition, completed at an average price of $95,976 per Bitcoin, highlights MicroStrategy’s position as a leading corporate Bitcoin holder. 

Despite this move, the company's stock, MSTR, experienced a 1% drop on Monday but remains up nearly 500% year-to-date, tracking Bitcoin's performance. 

The firm has been an advocate for Bitcoin adoption among corporations, with Michael Saylor, its co-founder, encouraging giants like Microsoft to consider Bitcoin integration. 

On a related front, Marathon Digital Holdings (MARA), a Bitcoin mining company, announced a $700 million private offering of convertible senior notes due in 2031. 

These 0% interest notes, classified as unsecured senior obligations, are convertible into cash, MARA stock, or a mix of both. 

The company plans to use $50 million of the proceeds for Bitcoin purchases and other growth initiatives, including optimizing its capital structure by repurchasing its 2026 convertible notes. 

“There’s a pretty low supply of Bitcoin over the counter, so you have a supply shortage. If Bitcoin moves above $100,000, there will be a big chase. I’m still confident that Bitcoin is going to close much higher before year-end, well above $100,000,” Thomas Less, an entrepreneur, remarked on CNBC.

Pantera Capital has projected Bitcoin's price to potentially reach $740,000 by 2028. 

At the time of reporting, the Bitcoin (BTC) price was $96,073.92.