In This Story
Marathon Digital Holdings (MARA), one of the world’s largest Bitcoin mining companies, is looking to increase its Bitcoin holdings by raising $250 million through a private offering of convertible senior notes.
The notes, which will mature in 2031, are being offered privately to qualified institutional buyers. They will be unsecured, senior obligations with interest payable semi-annually in arrears on the first days of March and September, starting next year.
Marathon is also considering an additional sale of $37.5 million in notes to initial purchasers, depending on market conditions. On Monday morning, shares of the company fell nearly 10%, trading at $15.30.
The company said in the announcement: “MARA intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes, which may include working capital, strategic acquisitions, expansion of existing assets, and repayment of debt and other outstanding obligations.”
Due to the substantial capital involved, the purchasing behaviors of major Bitcoin holders, including Bitcoin miners, significantly influence Bitcoin’s price. Marathon Digital Holdings is the second largest publicly traded company holding Bitcoin, following MicroStrategy (MSTR), according to crypto tracking site CoinGecko. MicroStrategy currently holds 226,331 Bitcoin, valued at approximately $13.58 billion, while Marathon Digital Holdings possesses 17,320 Bitcoin, worth around $1.04 billion.