In the latest announcement, Marathon Digital has revealed plans to offer $700 million in senior convertible notes due 2031 in a private placement, subject to market conditions and other factors.
Notably, it also grants the initial purchasers the option to purchase up to an additional $105 million in notes within 13 days of the initial issuance.
The company has stated that these notes will be offered to qualified institutional buyers and will be senior unsecured obligations of MARA, with no interest or expected accumulation.
Special interest will be paid semi-annually on June 1 and December 1 each year, beginning on June 1, 2025.
The notes will be convertible into cash, common stock of MARA, or a combination of cash and common stock of MARA, at MARA's election.
MARA expects to use up to $50 million of the proceeds from the note sale to repurchase a portion of its existing convertible notes due 2026 through privately negotiated transactions, with the remainder for general corporate purposes.
MARA Increases BTC Adoption
Recently, Marathon has acquired 6,474 Bitcoin (BTC) for over $600 million. This move comes amid the increasing institutional adoption of Bitcoin, with more and more public companies holding BTC on their balance sheets.
Marathon Digital has also shared its November 2024 Bitcoin Production Update. Notably, the company's activated Hash Rate has increased by 15% to 46.1 EH/s.
The company's current total BTC HODL is 34,959 BTC, valued at $3.3 billion. 12,965 BTC have been acquired since the beginning of the year at a medium price of $77,692. The company has achieved a BTC Yield per Share of 37.2% since the start of the year.
MicroStrategy, MARA, and Metaplanet are expanding their Bitcoin (BTC) investment strategies by offering convertible bonds to institutional investors.
The companies have increased their Bitcoin holdings and reported high yields, emphasizing their commitment to the digital asset.
MARA's latest acquisition further strengthens the company's position among the growing number of companies betting on Bitcoin as a long-term asset.
