Marathon Digital to raise $250 million to buy more Bitcoin

On August 12, Marathon Digital Holdings announced its $250 million fundraising effort through the issuance of convertible senior notes.

The company plans to expand its Bitcoin holdings, which shows its continued commitment to cryptocurrency investment.

Stock market reaction Lukewarm unveiled a brilliant Bitcoin strategy like Marathon Digital

The Nevada-based bitcoin mining firm said in a statement that it will issue unsecured senior notes. These notes bear interest beginning March 1, 2025 and are payable semi-annually and will mature in 2031.

The offering is targeted to qualified institutional buyers and includes an option to acquire an additional $37.5 million in notes. Marathon structured the notes flexibly, allowing them to be converted into cash, common stock or a combination of both. This structure is based on the financial strategy of the company.

In addition, Marathon stated that the net proceeds from this offering may be used for purposes other than the purchase of Bitcoin.

“MARA intends to use the net proceeds from the sale of the notes to acquire additional bitcoins and for general corporate purposes, which may include working capital, strategic acquisitions, expansion of existing assets and repayment of debt and other significant obligations.” he said.

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Following the announcement, Fred Thiel, chairman and CEO of Marathon Digital, wrote on Twitter that they are “preparing to buy more BTC” and tagged MicroStrategy founder Michael Saylor in the post. MicroStrategy is known as the largest public company in Bitcoin holdings, owning 226,500 BTC.

This move follows the firm's recent $100 million purchase of Bitcoin. As of July 25, Marathon's Bitcoin balance was $20,000.

However, Marathon's share price performance has not yet reflected enthusiasm for this initiative. Mara's stock was down 3.99% in pre-market trading at 09:04 ET, trading at $16.32, according to Google Financial data.

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Marathon Digital's strategy is in line with a broader trend of public Bitcoin mining companies expanding their operations. For example, BeInCrypto raised $413 million in July from New South Wales-based Iris Energy, a Bitcoin miner.

The company plans to use these funds to support its expansion goals by 2024 by adding 30 EH/s and 510 megawatts (MW) of data center capacity. Future acquisitions, additional power capacity and strategic monetization opportunities.