Key Takeaways
- Marathon Digital aims to raise $700M for Bitcoin purchases.
- The notes will mature in 2030 and are convertible into cash or stock.
- Marathon holds 27,562 Bitcoin, ranking it as the top public miner.
Marathon Digital Holdings (MARA), a leading Bitcoin mining company, unveiled plans to raise $700 million through a private offering of convertible senior notes. The funds will be directed toward acquiring Bitcoin and refinancing existing debt, the company announced on Monday.
The notes, set to mature on March 1, 2030, will pay semi-annual interest starting in 2025. Up to $200 million of the proceeds will be used to repurchase outstanding notes due in 2026, with the rest allocated for Bitcoin acquisitions and corporate expenses.
The offering targets qualified institutional buyers under Rule 144A of the Securities Act of 1933. Purchasers will have a 13-day option to acquire an additional $105 million in notes. The notes are convertible into cash, Marathon Digital common stock, or a combination of both at the company’s discretion.
Marathon Digital follows a “HODL” strategy, retaining all Bitcoin mined. With 27,562 Bitcoin currently in its holdings, Marathon is the largest public Bitcoin mining company by reserves, second only to MicroStrategy. The move aligns with similar debt-based strategies employed by firms like MicroStrategy and Metaplanet to bolster Bitcoin portfolios.
