In a bold move to solidify its position in the cryptocurrency market, Marathon Digital Holdings, Inc. (NASDAQ: MARA) has announced plans to raise $250 million through a private offering of convertible senior notes. The proceeds from this offering will primarily be used to acquire additional Bitcoin, with the remainder allocated for general corporate purposes.
The unsecured senior notes, maturing on September 1, 2031, will bear semi-annual interest starting March 1, 2025. Marathon Digital has also granted initial purchasers an option to acquire up to an additional $37.5 million in notes within 13 days of issuance.
This strategic move comes on the heels of Marathon Digital’s recent $100 million Bitcoin purchase, bringing its total holdings to over 20,818 BTC, valued at approximately $1.23 billion. The company’s decision to expand its Bitcoin treasury aligns with the broader trend of public companies, such as MicroStrategy and Tesla, adopting Bitcoin as a reserve asset.
“We are getting ready to buy more BTC,” stated Fred Thiel, Chairman and CEO of Marathon Digital, in a post on X (formerly Twitter), tagging MicroStrategy’s founder, Michael Saylor. MicroStrategy currently holds the largest Bitcoin position among public companies, with 226,500 BTC.
The offering, subject to market conditions and other factors, will be conducted privately, targeting qualified institutional buyers under Rule 144A of the Securities Act. Holders of the notes will have the option to convert them into cash, shares of Marathon Digital’s common stock, or a combination of both, depending on the company’s election.
Marathon Digital’s bold move to raise $250 million for Bitcoin acquisition underscores its commitment to capitalizing on the digital asset’s growth trajectory and enhancing its financial resilience in the face of macroeconomic uncertainty.
