Marathon Digital Buys $250 Million in Bitcoin (BTC) After Raising $300 Million Through Senior Notes

Marathon Digital Holdings (MARA), one of the largest publicly traded Bitcoin mining companies, has purchased approximately $249 million worth of Bitcoin.

The purchase was funded by the successful closing of a $300 million senior note offering.

MARA raises $300 million in private note offering

In an August 14 press release, Marathon Digital Holdings (MARA) announced the completion of a private offering of 2.125% convertible senior notes due September 2031.

These notes, sold to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, were highly sought, prompting initial investors to fully exercise their option to purchase an additional $50 million in notes .

This brought the total offering to $300 million, with net proceeds of approximately $292.5 million after deducting discounts and commissions.

Between August 12 and August 14, Marathon Digital used part of the proceeds to acquire around 4,144 BTC at an average price of $59,500 each. This purchase increased the company’s strategic Bitcoin reserve to over 25,000 BTC.

This recent haul follows an earlier one in July, where the company grabbed 2,282 BTC valued at $124 million. The Company plans to use the remaining funds for further Bitcoin purchases and general corporate purposes, which may include strategic acquisitions, asset expansion, working capital and debt repayment.

The notes, which are senior unsecured notes, will bear an interest rate of 2.125% per annum, with payments beginning on March 1, 2025, and will mature on September 1, 2031, unless repurchased, redact or become prior to specific conditions.

MARA senior notes offer

Starting September 6, 2028, the company has the option to redeem the notes for cash if its share price reaches at least 130% of the conversion over a defined period.

Ticketholders have the right to require Marathon to repurchase all or part of their tickets for cash on March 1, 2029 or upon the occurrence of certain significant corporate events. In such cases, the miner may be asked to increase the conversion rate for those who decide to convert their notes in relation to these events.

The notes may be converted into cash, shares of the Company’s common stock or a combination of both at your discretion. Before March 1, 2031, conversion is only allowed under certain conditions and during specific periods.

However, after that date, the conversion can occur at any time up to two trading days before the expiry date. The initial conversion rate is set at 52.9451 shares of MARA common stock per $1,000 of principal amount, equal to approximately $18.89 per share, with the rate subject to adjustment based on the occurrence of certain events.

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