Marathon Digital Plans to Raise $250 Million for Bitcoin Purchase
Marathon Digital, one of the leading Bitcoin mining companies, has announced its intention to raise $250 million through the sale of convertible notes in a private transaction.
The funds raised will primarily be used to finance the purchase of Bitcoin and other general corporate needs. The Florida-based company expects these interest-bearing obligations to mature on September 1, 2031.
MARA intends to use the net proceeds from the note sale to acquire additional bitcoins, for general corporate purposes, which may include working capital, strategic acquisitions, expansion of existing assets, and repayment of debt and other obligations.
Details of the Convertible Notes Sold by Marathon Digital
The specific terms, such as the interest rate and conversion rate, will be determined during the pricing process. Investors who subscribe to these notes will have the option to convert their investment into Marathon Digital shares at conditions specified at the time of the offer’s finalization.
A Leading Position in Bitcoin Reserves
Marathon Digital already stands out with its extensive Bitcoin reserve, which currently amounts to over 20,800 BTC, or approximately $1.2 billion at current prices. This figure far surpasses that of its competitors, including Hut 8, whose reserve is only half as large. This new fundraising could further enhance Marathon’s dominant position in the Bitcoin market among miners.
Operational Cost Management and Conservation Strategy
In the second quarter of the year, Marathon sold 51% of the BTC it had mined to cover its operational costs. However, the company has recently adopted a new strategy of fully retaining bitcoins on its balance sheet. As part of this approach, Marathon made a $100 million Bitcoin purchase, further strengthening its position.
