Key Takeaways
- Marathon Digital raised $950 million to expand its bitcoin holdings and manage debt.
- The company now holds 50,000 BTC, the second-largest corporate bitcoin treasury after MicroStrategy.
- Miners and bitcoin-linked firms are increasingly using convertible notes to finance bitcoin accumulation with capped call strategies.
Marathon Digital Holdings (MARA), the largest public bitcoin miner by holdings, has finalized an upsized $950 million private offering of convertible senior notes, securing $940.5 million in net proceeds for additional bitcoin purchases and other corporate activities.
Note sale details and usage
The zero-coupon convertible notes, due in 2032, offer no regular interest and can be converted into cash, shares, or both at MARA’s discretion.
The initial conversion rate is set at 49.3619 shares per $1,000 principal, with an implied conversion price of about $20.26. MARA may redeem the notes after January 15, 2030, if its stock price rises to at least 130% of the conversion price, while holders have a put right in January 2030 or upon certain major changes.
A portion of the proceeds—around $18.3 million—was used to repurchase $19.4 million of MARA’s 2026 notes.
Another $36.9 million funded capped call transactions to reduce dilution risk.
The bulk of the funds are allocated for buying more bitcoin, working capital, acquisitions, asset expansion, and further debt repayment.
Expanding bitcoin treasury
MARA currently holds approximately 50,000 BTC, valued near $6 billion, making it the second-largest public holder after MicroStrategy.
For more on MARA’s historical and current bitcoin holdings, see the Marathon bitcoin treasury tracker.
Industry trend toward debt-financed accumulation
The move follows an industry-wide pattern of miners and bitcoin-linked firms issuing convertibles with capped calls to manage dilution and maintain balance sheet flexibility for bitcoin accumulation.
This approach was popularized by MicroStrategy, which currently holds over 607,000 BTC.
For a full overview of public and private companies holding bitcoin, visit the bitcoin treasury database.
Market reaction
MARA shares were down about 1.22% at $17.04 following the announcement, with the company’s market cap at $6.2 billion and daily trading volumes averaging $834.7 million.
