Marathon Digital to Raise $250M Through Private Note Sale for Bitcoin Acquisition

Marathon Digital, a Bitcoin (BTC) miner, has announced its intention to raise $250 million through the sale of convertible notes in a private offering. The purpose of this fundraising initiative is to support the company’s bitcoin acquisitions and other corporate activities.

This move comes as Marathon Digital already possesses a substantial amount of bitcoin, with over 20,800 bitcoins in its possession. This amount is more than double the holdings of its closest competitor, Hut 8.

The convertible notes being issued by Marathon Digital will accrue interest biannually and are set to mature on September 1, 2031. The specific interest rate and conversion terms will be determined during the pricing phase, according to a statement from the Florida-based company.

At present, the company’s bitcoin holdings are valued at approximately $1.2 billion, based on current market prices. Marathon Digital has been actively managing its bitcoin reserves, having sold 51% of the bitcoins it mined in the second quarter to cover operational expenses. However, the company recently made a significant purchase of $100 million worth of bitcoin on the open market and has shifted its strategy to retain all bitcoins on its balance sheet.

Following this announcement, Marathon Digital’s shares experienced a 3.2% decline in pre-market trading. This development underscores the company’s strategic shift towards bolstering its bitcoin reserves and solidifying its position in the cryptocurrency market.

In summary, Marathon Digital’s decision to raise funds through convertible notes reflects its commitment to expanding its bitcoin holdings and strengthening its financial position within the evolving landscape of digital currencies.

This article was edited by Parikshit Mishra.