Marathon Digital Holdings Raises $250 Million for Bitcoin Acquisition

Marathon Digital Holdings, Inc. (MARA), a prominent Bitcoin miner, is set to raise $250 million through a debt offering to expand its bitcoin holdings. The company’s convertible senior notes will accrue semi-annual interest and mature in September 2031, with early redemption and conversion options into cash or MARA’s common stock. This offering is exclusive to qualified institutional buyers, with an additional option for initial purchasers to buy an extra $37.5 million in notes within 13 days of issuance.
Marathon’s recent announcement of a $100 million bitcoin purchase in late July has bolstered its position as the publicly traded company with the second-largest bitcoin holdings, according to Bitcoin Treasuries. Currently, Marathon holds more than 20,000 bitcoin on its balance sheet, with MicroStrategy being the only company holding more.


MicroStrategy pioneered the use of bitcoin as a reserve asset in 2020 and has similarly raised debt to increase its bitcoin reserves. The trend of holding cryptocurrency on balance sheets is gaining traction, with companies like Fintech startup Fold, healthcare company Semler Scientific (SMLR), Tesla (TSLA), and Block (SQ) adopting bitcoin strategies in recent years.


Following the announcement of the convertible note offering, Marathon’s shares fell over 10% on Monday, while bitcoin continued to trade above $58,600.


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