Marathon Digital raises $1 Billion to buy Bitcoin

Marathon Holdings has raised $1 billion to acquire Bitcoin primarily. These funds were raised through the private offering of 0.00% convertible senior notes due in 2030. The miner is the second largest Bitcoin corporate holder with 27,562 Bitcoin.

Two days ago, the company announced increasing its convertible note offering from $700 million to $850 million. These notes were issued to institutional investors falling under specific criteria and qualifications through private selections.

MARA raises $1 billion offering for 0% convertible senior notes due 2030.

Marathon Digital announced in a press release on November 21st that the funds raised will be used to expand its Bitcoin holdings and purchase back the existing convertible notes due in 2026. The remaining sum will be used for general corporate needs like working capital, asset expansion, and strategic acquisitions.

The leading U.S. Bitcoin miner shared its net amount of $980 million, calculated after deducting discounts and commissions. The company will repurchase its $212 million worth of 2026 convertible notes in privately negotiated transactions. 

According to the press release, the notes are unsecured, senior obligations of the mining company, and will not bear regular interest rates. At the same time, the principal amount of the notes will not accumulate. The notes are flexible, with an option to convert them into cash, MARA’s common stock shares, or a combination of both shares and cash.

Data from Bitcoin Treasuries shows Marathon Digital Holdings’s balance sheet currently holds 27,562 Bitcoin worth $2.66 billion at current market prices. The Bitcoin miner is the second largest Bitcoin corporate holder after Microstrategy.

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