Hmm
$MARA Holdings (MARA.US)$ Reuters· just
Mara Holdings, Inc. Announces Proposed Private Offering of $700 Million of Zero-Coupon Convertible Senior Notes
Mara Holdings, Inc. Announces Proposed Private Offering of $700 Million of Zero-Coupon Convertible Senior Notes
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Trytosaveabit OP : Marathon Digital Holdings: Proceeds to Be Used Primarily to Acquire Bitcoin and Repurchase Existing Convertible Notes Due 2026
10baggerbamm : so here's a question for you.. many companies are now following what microstrategy revolutionized.. they're adding Bitcoin to their balance sheet as a result of selling debt offerings that are convertible to common stock.
if Mara is going to use this offering to pay off a senior note which is smart retire a note that's callable at a higher interest rate replace it with a lower interest rate that's common sense. just like saying you have a credit card at 20% interest and you can roll it to another credit card at 10% interest you would do that no one would dispute that.
question is if they're going to be acquiring Bitcoin and holding on to it, your primary business is a Bitcoin mining company meaning they find it and then sell it.
if they are no longer going to be selling Bitcoin how will they have any revenues?
so think about that for a moment and how would you value the company if their revenues decline precipitously going forward because they're choosing to hold Bitcoin and not sell it
Trytosaveabit OP 10baggerbamm : So JMO whether the move is right or wrong? It’s my opinion that they are gambling nothing more! Hehehe! Because yup your credit card/loan statement is dead on! As far as using to buy the exact product they are “producing and selling” hehehe kinda don’t make a lot of sense? If you truly believe it’s going way higher? Then buy more miners and maybe just hold a few coins back in treasury instead of buying at highs! I don’t know! Hehehe. Im a nobody but that’s how I see it! Hehehe
10baggerbamm Trytosaveabit OP : the problem with mining is it's a shit hole and I reference this earlier in the year and got a lot of shit from people. the having screws miners. plain and simple end of conversation.
when the cost of producing a product increases which is their electricity either directly or indirectly through regulations from local areas taxing them and if they're not 100% energy independent and most are not at this point. in the cost of producing that product only go up. if the availability is decreased by 50% meaning that no matter how hard you try best case scenario you're only going to produce half as much. you need to have a 100% increase in the price in order to maintain your margins. and Bitcoin at 100,000 let's just say it's there has doubled from 50 about the price point of when in half and fell. so the reality is they can't make any more money at this point and going forward when there's another having Bitcoin has to double again in order for them to maintain the same profits because their top line revenue will go down by 50%. so the mining business it's set up for failure at the end of the day.. you can go out and buy more mining companies Duluth shareholders but you're still faced with the same challenge that ultimately the maximum that you're going to produce is going to be reduced by 50% and you need 100% double in price to maintain the same profits it's a shit model
Trytosaveabit OP 10baggerbamm : Plus they bought almost 6500 coin beginning of OCTOBER and paid just over 95K?? What’s that move? Again may pay off in long run. But as you stated earlier they mine it for profit! Now they using profit to buy and at ATH or close to it! Hehehe. Seems like new decision makers may be needed! BTW why not use the money to try and become energy independent or at least as close as possible! As you state accurately that’s where the cash would be better spent!
10baggerbamm Trytosaveabit OP : the only contrarian point that exists and maybe this is valid.. if other Bitcoin mining companies stop selling the Bitcoin that they mine during that quarter. if they hoard it and say we're going to wait for higher prices then this would cause a significant supply constraint in the secondary Market where Bitcoin is traded. it would in effect shut off new supply of Bitcoin. logically you would say since the adoption of Bitcoin is growing and I think that's a true statement at an institutional level at a retail level at a sovereign Nation level. then the price would spike dramatically because you have more money chasing less inventory.
that's the best case scenario argument that I could make for mining companies not selling but hoarding everything.
Trytosaveabit OP 10baggerbamm : Agree! And that goes back to my “ gamble “ statement! It could pay off? But it’s a gamble and with investors money! Hehehe
10baggerbamm Trytosaveabit OP : moments ago I was listening to Tom Lee you can Google him if you don't know who he is.. and he came out 100% unequivocally Bitcoin will close above 100,000 before the end of this calendar year. he said he believes that this backing and feeling below a hundred is intentional he believes that many people and it came out and said the exchanges so that's your coinbase, do not want Bitcoin closing over $100,000. he said there's an enormous supply constraint that exists right now and having Bitcoin close one time above 100 would cause a Chase effect. meaning an entire new wave of buyers will be coming in on top of the existing group of buyers and that will catapult the price pick the number. it's ironic that literally this conversation was going on and then a few minutes later tom lee on TV talking about it
Trytosaveabit OP 10baggerbamm : Thanks I’ll check it out!
10baggerbamm Trytosaveabit OP :
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