Marathon Digital seeks raising $250m to buy more Bitcoin

Marathon Digital is planning a $250 million convertible senior notes private offering as it intensifies its commitment to expanding its Bitcoin holdings.

Bitcoin mining firm Marathon Digital Holdings aims to raise $250 million through a private offering of convertible senior notes due in 2031 as it looks to double down on its Bitcoin (BTC) holding strategy.

The Florida-headquartered firm said in a press release on August 12 that the funds will be used to purchase additional Bitcoin as part of the company’s strategy to increase its crypto holdings.

The convertible notes, which will be offered to qualified institutional buyers under Rule 144A of the Securities Act of 1933, are unsecured, senior obligations of Marathon Digital and will bear interest payable semiannually, the press release states. The bitcoin mining firm also plans to grant initial buyers an option to purchase an additional $37.5 million in the notes.

Despite the news, Marathon Digital’s shares fell 3.11% in pre-market trading.

Marathon Digital is buying more Bitcoin

Marathon Digital’s latest move comes after the company purchased $100 million worth of Bitcoin in late July, bringing its holdings to over 20,000 BTC.

The initiative aligns with Marathon’s goal of doubling its Bitcoin mining capacity by 2024, targeting a hash rate of 50 EH/s. As Crypto.news previously reported, Marathon’s operations recently surpassed its competitors to reach a hash rate of 24.7 EH/s. If Marathon achieves its 50 EH/s goal, it will have more than doubled its hash rate since the beginning of 2024.

Marathon Digital previously said that it would hold all Bitcoin mined by its operations and “make strategic open market purchases periodically” as part of its new approach. Marathon Digital CEO Fred Thiel said at the time that the Bitcoin purchases reflected the firm’s “confidence in the long-term value” of the cryptocurrency as a “reserve asset.”