Marathon Digital buys $249m in Bitcoin after raising $300m from convertible notes

Marathon Digital purchased $249 million worth of Bitcoin using funds raised from a $300 million convertible senior note offering.

Marathon, the largest public Bitcoin (BTC) miner by hashrate, said in a press release on Aug. 14 that it had raised $300 million, which came to $292.5 million after discounts and commissions. It then used $249 million of that amount to purchase 4,144 BTC at an average price of $59,500.

MARA secured $300 million through an oversubscribed offering of convertible senior notes. With the proceeds, we purchased 4,144 BTC (approximately $249 million), increasing our strategic bitcoin reserve to over 25,000 BTC. Learn more: pic.twitter.com/EKwKW6eSny

— MARA (@MarathonDH) August 14, 2024

The funds were raised through debt securities in the form of 2.125% senior notes due in 2031, which were sold in an oversubscribed private offering to qualified institutional buyers.

Marathon said it will use the remaining funds, approximately $43 million, to purchase more Bitcoin and for general corporate purposes such as debt payments and strategic expansions.

In July, the Bitcoin miner bought $100 million worth of BTC and announced that he would keep all the Bitcoin he mined from now on. Adding the 4,144 BTC he just bought, Marathon now has over 25,000 coins with a market cap of $1.46 billion.

Despite the acquisition news, Marathon Digital’s stock fell 2.26% to $15.14 in after-hours trading on August 14. Additionally, its Q2 2024 revenues fell short of expectations, reaching $145 million compared to the $165.2 million it earned between January and March 2024. This could be a result of the rising cost of Bitcoin mining, which has doubled despite Marathon increasing its hash rate.

However, YoY growth was up 78%, with the miner earning just $81.8 million in Q2 2023. The company also added around 25,000 new Bitcoin mining rigs to its operations, bringing the total number of machines to around 250,000. This increased its hash rate to 24.7 EH/s, outpacing some of its biggest competitors like Riot and Core Scientific.