Marathon Digital Raises $250M in Convertible Notes For BTC

• Marathon Digital Holdings (MARA) announced a private offering of $250M convertible notes to buy more Bitcoin.
• The company provides initial purchasers an option to buy an additional $37.5M senior notes, based on market conditions.
• MARA’s convertible senior notes are said to mature on September 1, 2031, unless earlier repurchased or redeemed.

A global leader in leveraging digital assets, Marathon Digital Holdings Inc.(MARA) has announced a private offering. The firm aims to raise around $250 million in senior convertible notes to increase their Bitcoin holdings and to fund corporate obligations. 

In a press statement dated 12th August, MARA stated that the proposal is open to “qualified institutional buyers” under Rule 144A of the Securities Act 1933. The “unsecured, senior obligations” will bear interest payable on the first day of March and September, starting from March 1, 2025, the release stated. Notably, the senior notes are set to mature on September 1, 2031, unless earlier repurchased or redeemed.

The Bitcoin mining company subject to certain conditions, on or after 6th September 2028, can redeem all or a portion of the notes for cash. Holders can convert the notes either as cash or as stock, based on MARA’s preference. The firm added that the conversion options will be restricted before March 1, 2031, for greater flexibility as maturity time approaches.

Marathon also intended to provide initial purchasers an opportunity to buy an additional $37.5 million notes, within 13 days, from the time of issuance, based on market conditions. As per the statement, MARA tends to use the proceeds from the sale to procure more Bitcoin and for general corporate purposes, such as working capital, strategic acquisitions, expansion of existing assets, repayment of debt, and other outstanding commitments. 

MARA stated in their release that the proposal is subject to market conditions and emphasized that changes can be anticipated. If the said proposal is successful, it could significantly increase the position of the firm in the cryptocurrency industry. 

At the time of publication, BTC experienced a 0.91% swell in the last 24 hours and shot to 5.92% in the last 7 days. However, considering the results of the past 30 days, Bitcoin has gained about 1.96%.