Marathon Digital Holdings Inc. (MARA) has announced the completion of its offer on convertible senior notes due in 2031. In a press statement released on Wednesday, the firm revealed the closing of its offer to raise around $250 million in senior convertible notes to purchase more Bitcoins. The price of the notes sold in the offering was approximately $300 million. On Thursday, MARA posted a thread on their X profile announcing the success of their offer.
Marathon Digital Holdings stated that the firm, with the proceeds from the offer, acquired about 4,144 Bitcoin for nearly $249 million, each priced at about $59,500, including fees and expenses. This acquisition boosted the company’s strategic Bitcoin reserve to over 25K BTC.
Under Rule 144A of the Securities Act 1933, the notes were sold in a private offering to “qualified institutional buyers” between August 13 and 14. The release stated that the net proceeds from the sale of the notes were about $292.5 million in cash after deducting the initial purchasers’ discounts and commissions without including the cost to be paid by MARA.
Marathon Digital Raises $250M in Convertible Notes For BTCIn another press statement released by Marathon Digital on August 12, before the convertible notes offer was initiated, Marathon Digital stated that the notes are unsecured, senior obligations of the company, and are payable semi-annually from March 2025. The interest, which now bears a rate of 2.125% per annum, is payable in arrears on the first day of March and September, starting from March 1, 2025. In addition, the notes are set to mature on September 1, 2031, unless it is repurchased, reclaimed, or converted.
Based on subjective conditions, on or after September 6, 2025, MARA may redeem all or any portion of the notes for cash. The holders can convert them either for cash or for stock shares, or even as a combination of both, based on MARA’s decision.
The proceeds from the ‘notes’ offer were primarily earmarked for Bitcoin purchases. MARA, in the release, stated that some of the funds would also be addressed to general corporate obligations such as working capital, expansion of existing assets, strategic acquisitions, debt repayment, and other outstanding duties.
