TL;DR
- Marathon Digital Holdings will conduct a private offering of $250 million in convertible senior notes, maturing in 2031.
- The funds will be primarily used to acquire more Bitcoin and for general corporate purposes.
- The company remains committed to its “hodl” strategy, maintaining Bitcoin as a strategic reserve asset.
Marathon Digital Holdings, Inc. has announced an ambitious plan to strengthen its position in the Bitcoin market. The company intends to conduct a private offering of $250 million in convertible senior notes, maturing in 2031, aimed at qualified institutional buyers. This strategy will be key in reinforcing the company’s position as a supporter and promoter of BTC.
The offering, subject to market conditions, includes the possibility of increasing the amount by an additional $37.5 million, depending on investor demand. The notes to be offered will be unsecured senior obligations, with interest payable twice a year and a maturity date scheduled for September 2031.
The company has also set specific terms for the conversion and redemption of these notes. Holders will have the option to convert their notes into cash, Marathon common shares, or a combination of both, depending on the conditions established by the company.
Marathon Will Continue Buying Bitcoin With the New Funds
A crucial aspect is the destination of the funds raised. Marathon plans to use the proceeds primarily to acquire more Bitcoin, a strategy that aligns with its focus on holding as much BTC as possible and using it as a reserve asset. The company continues to progressively increase its holdings. In July, it reached a total of 20,818 BTC, valued at over $1.14 billion as of early August 2024.
MARA’s focus on Bitcoin could have a significant impact on the market. Large BTC purchases by institutions and companies are often closely watched by investors, as they can influence asset prices. Despite the present challenges, such as the reduction in block rewards due to the 2024 halving. Marathon remains steadfast in its “hodl” strategy. It is worth noting that the price of BTC has not shown a significant recovery. Remaining below $58,100, and the market remains cautious.
