Marathon Digital to Raise $250 Million Through Convertible Notes for Bitcoin Acquisition

Marathon Digital Plans to Raise $250 Million Through Convertible Notes

Bitcoin (BTC) miner Marathon Digital Holdings (MARA) has announced its intention to raise $250 million by offering convertible notes in a private placement. The primary goal of this funding initiative is to facilitate the acquisition of additional bitcoin and to support various general corporate purposes.

The proposed convertible notes will offer interest payments biannually and are set to mature on September 1, 2031. The specific interest rate and conversion rate will be determined during the pricing process, as stated by the Fort Lauderdale, Florida-based mining company.

Currently, Marathon Digital holds a significant amount of bitcoin, boasting a reserve of over 20,800 BTC, which is valued at approximately $1.2 billion based on current market prices, as reported by bitcointreasuries.com. This positions Marathon as a leader in bitcoin holdings, with more than double the amount of its closest competitor, Hut 8.

In the second quarter, Marathon sold off 51% of the bitcoin it mined to cover operational costs. However, the company has recently shifted its strategy, announcing a substantial purchase of $100 million worth of bitcoin in the open market, and has re-emphasized its commitment to holding all BTC on its balance sheet.

Following the announcement, the company’s stock experienced a decline, falling 3.2% in pre-market trading.