Bitcoin miner Marathon Digital has expanded its Bitcoin holdings by purchasing an additional $249 million worth of Bitcoin after raising $300 million through a senior note offering.
On August 14, Marathon announced that it had used a portion of the proceeds from the note sale to acquire approximately 4,144 Bitcoin at an average price of roughly $59,500. This purchase increased the company’s “strategic Bitcoin reserve to over 25,000 BTC,” as shared on X (formerly Twitter).
The convertible senior notes, due in September 2031, yielded net proceeds of around $292.5 million for Marathon. These notes carry a 2.125% annual interest rate and can be converted into cash, Marathon stock, or a combination of both.
Marathon stated that the remaining cash from the note sales would be used to buy more Bitcoin and for “general corporate purposes,” which may include strategic acquisitions. A spokesperson for Marathon told Cointelegraph that the company views Bitcoin as “the premier strategic treasury asset” and is pursuing “a multifaceted strategy for acquiring Bitcoin.”
This latest purchase follows a previous acquisition in July, when Marathon bought 2,282 BTC for $124 million. Marathon’s CEO and chairman, Fred Thiel, described this move as part of a “hodl strategy” — a term that has become popular in the crypto community, derived from a misspelling of “hold.”
Marathon shares closed down 2.26% on the day at $15.14, reflecting a nearly 34% decline year-to-date, according to Google Finance. After-hours trading saw a slight additional drop of 0.13% to $15.12.
Earlier in August, Marathon’s second-quarter earnings fell short of Wall Street expectations, with revenues of $145.1 million—9% below estimates—though the company still reported a 78% year-over-year increase from Q2 2023.
The company’s challenges come amid a significant decline in crypto mining profitability following the Bitcoin halving, which reduced mining rewards by half. Miner hash price, a key measure of mining profitability, fell to a record low earlier in August. Blockbridge noted that large public miners, particularly Marathon, which had the highest all-in mining cost in August, are facing difficulties in turning a profit.
The upcoming crypto options expiry is raising concerns about significant Bitcoin sell pressure that could push the price below a key support level.
On August 16, over $1.4 billion worth of Bitcoin (BTC) options are set to expire at 8:00 am UTC, according to Deribit. The “max pain point” for these options is set at $60,000, meaning this is the price at which most options contracts would expire worthless.
However, Bitcoin’s price fell over 3.6% in the past 24 hours, trading at $58,101 as of 8:35 am, according to Cointelegraph data.
This decline suggests that the $1.4 billion in options could introduce more downside volatility unless Bitcoin stages a recovery above $60,000. Typically, periods close to options expiry bring increased price volatility to the crypto market.
Could Bitcoin ETFs help BTC price recover?
While inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) were positive for two consecutive days, they turned negative again on August 14, with net outflows exceeding $81 million, according to Farside Investors.
Bitfinex analysts suggested that the favorable Consumer Price Index (CPI) reading could encourage more inflows into Bitcoin ETFs. They told Cointelegraph:
“The favorable CPI data is expected to catalyze further inflows. Investors are likely positioning themselves to benefit from the expected rate cut and the potential for a broader market rally. As a result, we might observe continued and possibly accelerated inflows into these ETFs, reflecting a shift in sentiment toward risk-on assets.”
The U.S. Bureau of Labor Statistics (BLS) reported July CPI data on August 14, showing annualized price increases for consumers of 2.9%, the slowest rate increase since 2021.
ETF inflows have historically contributed significantly to a cryptocurrency’s price appreciation. For Bitcoin, ETFs accounted for about 75% of new investment by February 15, helping it surpass the $50,000 mark.
Could Bitcoin price dip below $56,000?
Bitcoin could potentially dip below $56,000 before gaining more upside momentum.
According to market sentiment among Bitcoin whales, BTC is likely headed to the $56,000 support level. Trade Confident, a crypto research platform, posted on August 14:
“Based on current market indicators, we are looking at $56k for $BTC’s next move!”
Bitcoin continued its decline on August 15, driven by increased selling pressure following a significant BTC transfer by the U.S. government.
Data from Cointelegraph Markets Pro and TradingView showed Bitcoin hitting multiday lows, dropping to $57,816.
The sell-off was triggered by the U.S. government’s largest BTC transfer of the year, totaling 10,000 BTC (approximately $581 million), which was sent to the exchange Coinbase, according to crypto intelligence firm Arkham.
This large transfer overshadowed any positive impact from U.S. macroeconomic developments, such as a cooling Consumer Price Index (CPI), which failed to provide a boost to Bitcoin’s price.
The analytics platform Lookonchain highlighted that this wasn’t an isolated event, noting similar market reactions to U.S. government BTC transfers throughout 2024. “The US Government transferred 15,940 $BTC ($966.4M) to Coinbase Prime in three transactions this year,” Lookonchain wrote on X (formerly Twitter). “Within three days of the first two transfers, the price of $BTC both dropped by ~5%.”
Axel Adler, a contributor to the onchain analytics platform CryptoQuant, suggested that large market players had anticipated the sell-off following the government transfer by “selling the news.” He noted, “Every time Arkham tweets about coin movements, bears instantly start dumping the market. 10K BTC from a US Government doesn’t affect anything, but the mere fact causes such a reaction.”
The sale by the U.S. government is part of a broader trend of nation-states offloading seized BTC holdings, contributing to short-term bearish narratives. As Cointelegraph previously reported, Germany also sold its entire BTC tranche, with Arkham’s tagged wallet now holding just 0.007 BTC ($400). The offloading took place in June and July, and within a week of the final sale, Germany had already missed out on $124 million in potential profits.
“This will go down in history as one of the biggest mistakes a nation could make,” predicted social media commentator and YouTuber Quinten at the time.
Bitcoin miner Marathon Digital has expanded its Bitcoin holdings by purchasing an additional $249 million worth of Bitcoin after raising $300 million through a senior note offering.
On August 14, Marathon announced that it had used a portion of the proceeds from the note sale to acquire approximately 4,144 Bitcoin at an average price of roughly $59,500. This purchase increased the company’s “strategic Bitcoin reserve to over 25,000 BTC,” as shared on X (formerly Twitter).
The convertible senior notes, due in September 2031, yielded net proceeds of around $292.5 million for Marathon. These notes carry a 2.125% annual interest rate and can be converted into cash, Marathon stock, or a combination of both.
Marathon stated that the remaining cash from the note sales would be used to buy more Bitcoin and for “general corporate purposes,” which may include strategic acquisitions. A spokesperson for Marathon told Cointelegraph that the company views Bitcoin as “the premier strategic treasury asset” and is pursuing “a multifaceted strategy for acquiring Bitcoin.”
This latest purchase follows a previous acquisition in July, when Marathon bought 2,282 BTC for $124 million. Marathon’s CEO and chairman, Fred Thiel, described this move as part of a “hodl strategy” — a term that has become popular in the crypto community, derived from a misspelling of “hold.”
Marathon shares closed down 2.26% on the day at $15.14, reflecting a nearly 34% decline year-to-date, according to Google Finance. After-hours trading saw a slight additional drop of 0.13% to $15.12.
Earlier in August, Marathon’s second-quarter earnings fell short of Wall Street expectations, with revenues of $145.1 million—9% below estimates—though the company still reported a 78% year-over-year increase from Q2 2023.
The company’s challenges come amid a significant decline in crypto mining profitability following the Bitcoin halving, which reduced mining rewards by half. Miner hash price, a key measure of mining profitability, fell to a record low earlier in August. Blockbridge noted that large public miners, particularly Marathon, which had the highest all-in mining cost in August, are facing difficulties in turning a profit.
The upcoming crypto options expiry is raising concerns about significant Bitcoin sell pressure that could push the price below a key support level.
On August 16, over $1.4 billion worth of Bitcoin (BTC) options are set to expire at 8:00 am UTC, according to Deribit. The “max pain point” for these options is set at $60,000, meaning this is the price at which most options contracts would expire worthless.
However, Bitcoin’s price fell over 3.6% in the past 24 hours, trading at $58,101 as of 8:35 am, according to Cointelegraph data.
This decline suggests that the $1.4 billion in options could introduce more downside volatility unless Bitcoin stages a recovery above $60,000. Typically, periods close to options expiry bring increased price volatility to the crypto market.
Could Bitcoin ETFs help BTC price recover?
While inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) were positive for two consecutive days, they turned negative again on August 14, with net outflows exceeding $81 million, according to Farside Investors.
Bitfinex analysts suggested that the favorable Consumer Price Index (CPI) reading could encourage more inflows into Bitcoin ETFs. They told Cointelegraph:
“The favorable CPI data is expected to catalyze further inflows. Investors are likely positioning themselves to benefit from the expected rate cut and the potential for a broader market rally. As a result, we might observe continued and possibly accelerated inflows into these ETFs, reflecting a shift in sentiment toward risk-on assets.”
The U.S. Bureau of Labor Statistics (BLS) reported July CPI data on August 14, showing annualized price increases for consumers of 2.9%, the slowest rate increase since 2021.
ETF inflows have historically contributed significantly to a cryptocurrency’s price appreciation. For Bitcoin, ETFs accounted for about 75% of new investment by February 15, helping it surpass the $50,000 mark.
Could Bitcoin price dip below $56,000?
Bitcoin could potentially dip below $56,000 before gaining more upside momentum.
According to market sentiment among Bitcoin whales, BTC is likely headed to the $56,000 support level. Trade Confident, a crypto research platform, posted on August 14:
“Based on current market indicators, we are looking at $56k for $BTC’s next move!”
Bitcoin continued its decline on August 15, driven by increased selling pressure following a significant BTC transfer by the U.S. government.
Data from Cointelegraph Markets Pro and TradingView showed Bitcoin hitting multiday lows, dropping to $57,816.
The sell-off was triggered by the U.S. government’s largest BTC transfer of the year, totaling 10,000 BTC (approximately $581 million), which was sent to the exchange Coinbase, according to crypto intelligence firm Arkham.
This large transfer overshadowed any positive impact from U.S. macroeconomic developments, such as a cooling Consumer Price Index (CPI), which failed to provide a boost to Bitcoin’s price.
The analytics platform Lookonchain highlighted that this wasn’t an isolated event, noting similar market reactions to U.S. government BTC transfers throughout 2024. “The US Government transferred 15,940 $BTC ($966.4M) to Coinbase Prime in three transactions this year,” Lookonchain wrote on X (formerly Twitter). “Within three days of the first two transfers, the price of $BTC both dropped by ~5%.”
Axel Adler, a contributor to the onchain analytics platform CryptoQuant, suggested that large market players had anticipated the sell-off following the government transfer by “selling the news.” He noted, “Every time Arkham tweets about coin movements, bears instantly start dumping the market. 10K BTC from a US Government doesn’t affect anything, but the mere fact causes such a reaction.”
The sale by the U.S. government is part of a broader trend of nation-states offloading seized BTC holdings, contributing to short-term bearish narratives. As Cointelegraph previously reported, Germany also sold its entire BTC tranche, with Arkham’s tagged wallet now holding just 0.007 BTC ($400). The offloading took place in June and July, and within a week of the final sale, Germany had already missed out on $124 million in potential profits.
“This will go down in history as one of the biggest mistakes a nation could make,” predicted social media commentator and YouTuber Quinten at the time.
Bitcoin miner Marathon Digital has expanded its Bitcoin holdings by purchasing an additional $249 million worth of Bitcoin after raising $300 million through a senior note offering.
On August 14, Marathon announced that it had used a portion of the proceeds from the note sale to acquire approximately 4,144 Bitcoin at an average price of roughly $59,500. This purchase increased the company’s “strategic Bitcoin reserve to over 25,000 BTC,” as shared on X (formerly Twitter).
The convertible senior notes, due in September 2031, yielded net proceeds of around $292.5 million for Marathon. These notes carry a 2.125% annual interest rate and can be converted into cash, Marathon stock, or a combination of both.
Marathon stated that the remaining cash from the note sales would be used to buy more Bitcoin and for “general corporate purposes,” which may include strategic acquisitions. A spokesperson for Marathon told Cointelegraph that the company views Bitcoin as “the premier strategic treasury asset” and is pursuing “a multifaceted strategy for acquiring Bitcoin.”
This latest purchase follows a previous acquisition in July, when Marathon bought 2,282 BTC for $124 million. Marathon’s CEO and chairman, Fred Thiel, described this move as part of a “hodl strategy” — a term that has become popular in the crypto community, derived from a misspelling of “hold.”
Marathon shares closed down 2.26% on the day at $15.14, reflecting a nearly 34% decline year-to-date, according to Google Finance. After-hours trading saw a slight additional drop of 0.13% to $15.12.
Earlier in August, Marathon’s second-quarter earnings fell short of Wall Street expectations, with revenues of $145.1 million—9% below estimates—though the company still reported a 78% year-over-year increase from Q2 2023.
The company’s challenges come amid a significant decline in crypto mining profitability following the Bitcoin halving, which reduced mining rewards by half. Miner hash price, a key measure of mining profitability, fell to a record low earlier in August. Blockbridge noted that large public miners, particularly Marathon, which had the highest all-in mining cost in August, are facing difficulties in turning a profit.
Bitcoin (BTC) remained largely unaffected by global macroeconomic events on August 13, as its price continued to hover below the $60,000 mark.
Data from Cointelegraph Markets Pro and TradingView highlighted a tepid response from BTC/USD during the Wall Street open, which contrasted sharply with the more positive performance in stock markets.
Japan led the bullish sentiment of the day, with the Nikkei 225 fully recovering its earlier record losses for the month, closing at 36,232 points, up 3.45%. U.S. equities also had a strong start, with the S&P 500 and Nasdaq Composite Index rising by 0.8% and 1.4%, respectively, within the first hour of trading.
This robust performance was supported by the July Producer Price Index (PPI) report, which came in below expectations—a factor that fueled speculation about potential interest rate cuts and increased capital flow into risk assets.
According to the latest data from CME Group’s FedWatch Tool, markets are now favoring a 0.5% rate cut by the Federal Reserve at its upcoming September meeting, compared to a previous expectation of a 0.25% cut.
Commenting on Bitcoin’s muted reaction to these developments, popular trader Daan Crypto Trades noted how macroeconomic data releases often lead to short-term “fakeout” moves. “This was just PPI so the move wasn’t large,” he explained in a post on X (formerly Twitter). “We tend to see similar things on CPI which often causes much larger (and slightly slower) whipsaw moves.”
Looking ahead to the upcoming Consumer Price Index (CPI) report due on August 14, Daan Crypto Trades added, “PPI not a bad start. Coming in slightly below which I think is good. Gives the Fed room to start cutting (this would not be great if we’d get hot inflation reads), but also not going into the negative where we’d have to start getting afraid for deflation yet.”
Bitcoin (BTC) remained largely unaffected by global macroeconomic events on August 13, as its price continued to hover below the $60,000 mark.
Data from Cointelegraph Markets Pro and TradingView highlighted a tepid response from BTC/USD during the Wall Street open, which contrasted sharply with the more positive performance in stock markets.
Japan led the bullish sentiment of the day, with the Nikkei 225 fully recovering its earlier record losses for the month, closing at 36,232 points, up 3.45%. U.S. equities also had a strong start, with the S&P 500 and Nasdaq Composite Index rising by 0.8% and 1.4%, respectively, within the first hour of trading.
This robust performance was supported by the July Producer Price Index (PPI) report, which came in below expectations—a factor that fueled speculation about potential interest rate cuts and increased capital flow into risk assets.
According to the latest data from CME Group’s FedWatch Tool, markets are now favoring a 0.5% rate cut by the Federal Reserve at its upcoming September meeting, compared to a previous expectation of a 0.25% cut.
Commenting on Bitcoin’s muted reaction to these developments, popular trader Daan Crypto Trades noted how macroeconomic data releases often lead to short-term “fakeout” moves. “This was just PPI so the move wasn’t large,” he explained in a post on X (formerly Twitter). “We tend to see similar things on CPI which often causes much larger (and slightly slower) whipsaw moves.”
Looking ahead to the upcoming Consumer Price Index (CPI) report due on August 14, Daan Crypto Trades added, “PPI not a bad start. Coming in slightly below which I think is good. Gives the Fed room to start cutting (this would not be great if we’d get hot inflation reads), but also not going into the negative where we’d have to start getting afraid for deflation yet.”
Institutional investors have paused their accumulation of stablecoins, leading to a significant drop in Bitcoin’s price below a key psychological level.
Over the past 24 hours, Bitcoin’s price fell by 3.9%, trading at $58,930 as of 08:03 am UTC on August 12, down from a weekly high of $62,510.
The dip below the $60,000 mark appears to be linked to institutions halting their stablecoin buying spree, according to an August 12 post on X by on-chain analytics platform Lookonchain: “Institutions seem to have temporarily stopped buying, and the price of $BTC dropped 4.5% today! We noticed that institutions stopped receiving $USDT from #TetherTreasury and transferring it to exchanges 2 days ago.”
Stablecoin inflows to crypto exchanges are a key indicator of buying pressure and investor interest, as they serve as the primary on-ramp from fiat to crypto for many investors. The recent halt in institutional stablecoin inflows could indicate a temporary lack of appetite for Bitcoin.
From August 5 to August 9, Tether, which issues the world’s largest stablecoin (USDT), minted over $1.3 billion worth of stablecoins, coinciding with a market bottom. This influx of stablecoins was transferred to major centralized exchanges, including Kraken, Coinbase, OKX, and Bullish.
Bitcoin had reached a five-month low of just above $49,500 on August 5 but rebounded by over 21% to surpass $60,000 by August 9. The price could recover above the $60,000 resistance level once large institutional stablecoin inflows resume.
Technical analyst Rekt Capital noted that Bitcoin needs to reclaim $60,600 to sustain its upward momentum, stating in an August 10 post: “Bitcoin is doing all the right things to confirm $60,600 as support so as to position price for a revisit of $65,000+ over time.”