Marathon Digital Raises $1B to Expand Bitcoin Holdings

Marathon Digital Holdings, one of the largest Bitcoin miners, has completed a $1 billion offering of 0% convertible senior notes due 2030. Net proceeds from the sale were approximately $980 million.

According to the company, the net proceeds will be used mainly to buy bitcoins.

Marathon Digital holds more than $2.5 billion worth of bitcoins

After the last purchase in September, Marathon Digital's bitcoin holdings stand at 25,945 BTC. This is currently roughly $2.52 billion, as Bitcoin hit an all-time high of $98,000 earlier today.

However, the company's decision to expand its holdings could point to a larger bullish cycle in the long run. According to the press release, Marathon Digital plans to use $199 million of the net proceeds to purchase existing convertible notes in 2026.

The rest will be used to earn more bitcoins and for general corporate purposes. Marathon Digital is currently the second largest holder of Bitcoin among publicly traded companies.

The notes offer the flexibility to convert into cash, shares of Marathon common stock or a combination of both. Redemption terms include the Company's ability to redeem the Notes at full principal amount plus accrued interest.

“$1 billion. 0% interest. MARA has completed the largest convertible note among BTC miners. The mission, as always: provide value. Get #bitcoin,” the company wrote on X (former Twitter).

Increase in Bitcoin purchases among public organizations

Marathon Digital is following a continuing trend of public companies increasing their Bitcoin holdings during this bull market. Earlier this week, MicroStrategy announced plans to issue $1.75 billion in convertible notes maturing in 2029. The proceeds will be used to fund additional Bitcoin purchases.

On the same day, the company acquired $4.6 billion worth of Bitcoin, building on a $2 billion purchase from last week.

Bitcoin is at an all-time high and these aggressive purchases have boosted MicroStrategy's stock price nearly 120% in a month. The largest bitcoin holder has made the list of the top 100 public companies in the US.

Meanwhile, Marathon Digital faces challenges despite growing bitcoin reserves. The company reported a net loss of $125 million in Q3. This is a $92 million increase in operating expenses over the year.

However, its processing capacity has been strengthened. Earlier this month, the power plant's hash rate rose by 93 percent, indicating increased mining efficiency. Marathon Digital has signed an $80 million deal with the Cainan government to expand its Bitcoin mining capabilities.