Marathon Digital buys $250M in Bitcoin (BTC) after raising $300M in senior notes.

Marathon Digital Holdings (MARA), one of the most publicly traded bitcoin mining companies, has bought nearly $249 million worth of bitcoins.

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

MARA Raises $300M in Private Note Offering

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

In the year These notes, which were sold to qualified institutional buyers under Rule 144A of the Securities Act of 1933, were in such high demand that the original investors exercised their option to purchase an additional $50 million of the notes.

That brought the total offering to $300 million, with net income after deducting discounts and commissions of nearly $292.5 million.

Between August 12th and August 14th, Marathon Digital used a portion of the proceeds to earn 4,144 BTC at an average price of $59,500 each. This purchase increased the firm's strategic bitcoin reserves to over 25,000 BTC.

This latest stock follows the previous one in July, when the company acquired 2,282 BTC worth $124 million. The Company plans to use the remaining funds for continued Bitcoin acquisitions and general corporate purposes, which may include strategic acquisitions, asset expansion, working capital and debt repayments.

The notes, unsecured senior obligations, bear interest at a rate of 2.125% per annum, with payments commencing on March 1, 2025, and maturing on September 1, 2031, unless earlier redeemed, redeemed or converted in accordance with certain terms.

MARA Senior Note Delivery

Beginning September 6, 2028, the Company has an option to redeem the notes for cash if the stock price reaches at least 130 percent of the conversion rate within a specified period.

Noteholders have the right to require Marathon to redeem all or part of their Notes for cash on or after 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 choose to convert the note in connection with these events.

The Notes are convertible into cash, common stock of the Company or a combination of both at its sole discretion. Conversion before March 1, 2031 is permitted only under certain conditions and during certain periods.

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