Bitcoin Marathon Digital Eyes Acquisition With $250M Convertible Note Offering

Bitcoin mining company Marathon Digital Holdings has announced plans for a $250 million offering of convertible senior notes due 2031. The latest private offering is aimed at “qualified institutional buyers.”

The company intends to use the proceeds for the acquisition of Bitcoin as well as for corporate growth.

The company also has the option to increase the offering by an additional $37.5 million, depending on market conditions. These notes, which will be senior unsecured obligations of the company, mature in 2031 with interest payments beginning in 2025.

Bitcoin Holdings Expansion

According to the official press release, Marathon intends to use the proceeds of this offering to acquire additional Bitcoins and for other corporate purposes, such as strategic acquisitions and debt repayment.

“The notes will be offered and sold to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A of the Securities Act.

The offer and sale of the notes and the shares of MARA common stock issuable after the conversion of the notes, if any, have not been and will not be registered under the Securities Act or the laws of securities of any other jurisdiction, and the notes and any such shares may not be offered or sold in the United States without registration or an applicable exemption from such registration requirements.”

Large-scale Bitcoin holders, including miners, can greatly affect the price of BTC due to their considerable capital. Investors frequently monitor these institutional buying trends to gauge demand for Bitcoin. Marathon Digital, for example, has significantly expanded its BTC holdings as part of its “full HODL” strategy.

In an announcement on August 6, the mining company disclosed the acquisition of 2,282 BTC worth more than $124 million at the time. This brought his total to 20,818 BTC, worth over $1.14 billion.

Drop in Marathon revenue

Marathon Digital reported second-quarter revenue of $145.1 million, missing Wall Street’s forecast of $157.9 million by 9%.

As CryptoPotato reported earlier this month, the shortfall was due to operational challenges including equipment failures, maintenance at the Ellendale site, a rising global hash rate, and the recent Bitcoin halving . CEO Fred Thiel acknowledged the impact on BTC production, but noted that Marathon achieved record mining power of 31.5 EH/s during the quarter.

Meanwhile, the company aims to reach 50 EH/sa by the end of the year, with further expansion planned for 2025.

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