Major Bitcoin mining firms, MARA and Hut 8, made significant acquisitions despite a bearish market. MARA purchased 15,574 BTC for $1.53 billion, raising its total reserves to 44,394 BTC, valued at over $4.4 billion. Meanwhile, Hut 8 increased its holdings by 990 BTC, valued at $100 million, bringing its reserves to 10,096 BTC. These purchases make both firms top corporate Bitcoin holders globally.
MARA financed its acquisitions via two convertible bond issuances, totaling $1.925 billion. The bonds mature in 2030 and 2031, issued at a 40%+ premium over MARA’s share price.
MARA raised $1.925 billion from 0% convertible notes in November and December. Using the proceeds from its zero-coupon convertible notes offerings, MARA has acquired 15,574 BTC for ~$1.53 billion at ~$98,529 per #bitcoin and repurchased ~$263 million in aggregate principal amount… pic.twitter.com/ycGRk9BYfv
— MARA (@MARAHoldings) December 19, 2024
Additionally, Riot Platforms acquired $510 million worth of Bitcoin, while MicroStrategy added 15,350 BTC to its treasury, bringing its holdings to a staggering 439,000 BTC, worth over $45 billion. Despite these bullish moves, MARA and Hut 8 stocks dropped by 5% and 7%, respectively, reflecting broader market sentiment.
IMF Loan Forces Bitcoin Adjustments in El Salvador
El Salvador reached a $1.4 billion loan deal with the IMF, agreeing to limit Bitcoin-related activities. Companies can now voluntarily accept Bitcoin, and public sector involvement in cryptocurrency will be scaled back. The government will also reduce its role in managing the Chivo wallet, while taxes will continue to be collected in US dollars.
IMF has reached an agreement with El Salvador on a $1.4B loan to strengthen the Central American nation's economy pic.twitter.com/IBxQgGcWMz
— TRT World Now (@TRTWorldNow) December 19, 2024
These measures aim to reduce the country’s debt-to-GDP ratio and minimize risks associated with Bitcoin. Despite these changes, El Salvador remains committed to Bitcoin, continuing its daily cryptocurrency purchases.
Critics argue that over 90% of Salvadorans do not use Bitcoin for transactions, reflecting limited adoption. Nonetheless, the loan agreement signals a compromise, ensuring continued IMF support while maintaining a Bitcoin-centric strategy.
Bitcoin Technical Analysis: Bearish Momentum Prevails
Bitcoin is trading at $93,740, marking a steep 8% decline in 24 hours as selling pressure surges. The 24-hour trading volume reached $118.6 billion, reflecting intense market activity.
Key support levels are at $90,780 and $88,730, with resistance at $97,810 and $100,760.
The 50-day EMA at $102,940 signals sustained bearish momentum, while the RSI, at 31, indicates oversold conditions, hinting at a potential short-term rebound.
However, a lack of momentum above resistance levels confirms a weak outlook. If the price breaches $90,780, the next critical test lies at $86,720.
Key Insights
- MARA and Hut 8 expand holdings; Bitcoin dominance persists.
- IMF loan forces El Salvador to adjust Bitcoin strategy.
- Bitcoin RSI at 31 hints at rebound; support lies at $90,781.
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