Kinda cool that Marathon Digital MARA is doing something like MicroStrategy with grabbing Bitcoin via convertible notes. But really, buying huge amount of BTC at an average price of $95,395 apiece does sound rather risky, especially that it's an institution, and we know how volatile Bitcoin is. More generally speaking, while MARA stock has rallied, using significant amounts of debt to purchase BTC can come back to haunt during downturns in the market. In the event of a serious Bitcoin drawdown, MARA would be placed into financial distress, something similar to questions of MicroStrategy's purchases of BTC with debt. This strategy could work out great if the bull run continue but it definitely has its risks.
Any investment has risks, not just bitcoin, especially the higher the return the greater the risk.
For a company with an $8 billion market cap, spending nearly $4 billion on bitcoin is a risky decision, but let's not forget that MARA is a cryptocurrency mining company. So it is understandable and absolutely correct that the majority of their assets are in bitcoin. They are one of the companies in the crypto industry, I believe they know more about bitcoin than any organization or company, including MicroStrategy. So I don't think we need to worry about them because they know what they are doing.
