Marathon Digital Holdings announced its intention to issue $250 million of convertible preferred notes in a private placement to qualified institutional buyers.
The company plans to use the net proceeds from the sale to acquire additional Bitcoin and for general corporate purposes.
Services provided by Marathon are subject to market and other conditions, meaning there is no guarantee that they will be completed within the planned terms, regardless of intent.
The bonds are unsecured preferred bonds with interest paid semiannually on March and September 1 each year, starting from next year.
These bonds mature on September 1, 2031, unless repurchased earlier.
Marathon Digital’s intention to issue convertible bonds comes after the company reported a net loss of $199.7 million in the second quarter of 2024, compared to a loss of $9 million reported in the same quarter last year.
Late last month, Marathon Digital announced it had purchased an additional $100 million worth of Bitcoin, bringing its balance sheet to over 20,000 Bitcoins.
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