Marathon To Raise $250 Million To Buy More Bitcoin

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Fred Thiel, CEO of Marathon Digital Holdings, listens at the Bitcoin 2021 conference in Miami, Florida, USA, Saturday, June 5, 2021. Key Takeaways

Marathon plans to raise $250 million through a debt offering to purchase more Bitcoin.

Marathon currently has over 20,000 Bitcoins on its balance sheet.

MicroStrategy first popularized using Bitcoin as a reserve asset in 2020 and also borrowed money to add to its Bitcoin reserves.

Bitcoin mining company Marathon Digital Holdings, Inc. (MARA) has raised $250 million through a debt offering to purchase more Bitcoin as the company pursues its MicroStrategy (MSTR) strategy.

The company’s convertible senior notes will bear semi-annual interest and mature in September 2031, with provisions for early redemption and conversion into cash or MARA common stock. The offering will be available only to qualified institutional buyers and includes an option for initial buyers to purchase an additional $37.5 million of notes within 13 days of issuance.

The company’s shares fell following the announcement.

Marathon Places Big Bets on Bitcoin

Marathon recently announced that it purchased $100 million worth of bitcoin in late July, and the company currently holds over 20,000 bitcoins on its balance sheet. This makes them the public company with the second-largest bitcoin holdings, according to Bitcoin Treasuries.

MicroStrategy is the only public company that holds more bitcoin than Marathon. MicroStrategy used the strategy of offering convertible notes to buy more bitcoin earlier this year. The data provider first adopted bitcoin as a reserve asset in 2020.

More companies are now embracing holding cryptocurrencies on their balance sheets. Fintech startup Fold and healthcare company Semler Scientific (SMLR) have also made similar moves in recent months. Larger companies like Tesla (TSLA) and Block (SQ) (formerly Square) have also adopted a bitcoin strategy in recent years.

Marathon fell more than 10% on Monday after the convertible bond offerings were announced. Meanwhile, bitcoin is trading above $58,600.

Read the original article on Investopedia.