Key Points
- Marathon Digital is planning a $250 million private offering of convertible senior notes to expand Bitcoin holdings.
- The company recently acquired $100 million worth of Bitcoin, pushing its holdings to over 20,000 BTC.
Marathon Digital, a Bitcoin mining firm, is looking to raise $250 million. This will be done through a private offering of convertible senior notes due in 2031. The aim is to expand its Bitcoin (BTC) holdings.
Details of the Offering
In a press release on August 12, the Florida-based company announced that the funds would be used to buy more Bitcoin. This is part of their ongoing strategy to increase their cryptocurrency holdings.
The convertible notes are unsecured and will be offered to qualified institutional buyers. They are senior obligations of Marathon Digital and will bear interest payable semi-annually. The company also plans to give initial purchasers the option to acquire an additional $37.5 million of the notes. However, following this announcement, Marathon Digital’s stock fell 3.11% in pre-market trading.
Marathon Digital’s Bitcoin Strategy
This latest move by Marathon Digital follows their recent purchase of $100 million worth of Bitcoin in late July. This acquisition pushed their holdings to over 20,000 BTC.
The company’s goal is to double its Bitcoin mining capacity by 2024, targeting a hash rate of 50 EH/s. Recently, Marathon’s operations achieved a hash rate of 24.7 EH/s, surpassing its competitors. If the company reaches its target of 50 EH/s, it will have more than doubled its hash rate since the start of 2024.
Marathon Digital has also stated that it will keep all Bitcoin mined in its operations. It will also “periodically make strategic open market purchases”. Fred Thiel, Marathon Digital’s CEO, stated that the company’s Bitcoin purchases reflect their “confidence in the long-term value” of the cryptocurrency as a “reserve asset”.
