- Marathon Digital plans to raise $250 million via convertible bonds to buy bitcoin.
- The fund will also support corporate initiatives, including debt repayment and expansion.
- The company holds over 20,800 BTC worth $1.2 billion, more than double that of its closest competitor.
Marathon Digital, a leader in Bitcoin mining, announced plans to raise $250 million through a private offering of convertible preferred bonds, with the aim of increasing its Bitcoin (BTC) holdings and raising funds for general corporate purposes.
These notes, which are available only to qualified institutional buyers, pay coupon semiannually and mature on September 1, 2031. The specific interest rate and conversion factor will be determined during the pricing process.
The funds raised will be used to purchase additional Bitcoin, as well as support a range of corporate initiatives, including working capital, strategic acquisitions, expansion of existing assets, and debt repayment.
Marathon Digital’s move shows confidence in Bitcoin.
The move is part of Marathon Digital’s efforts to solidify its position as the world’s largest Bitcoin miner.
The company currently holds over 20,800 BTC, worth about $1.2 billion, more than double the amount held by its closest competitor, Hut 8.
Marathon has been actively growing its Bitcoin reserves, adding $124 million worth of the cryptocurrency in July 2024 alone.
Despite a significant price drop in early August, Bitcoin has shown resilience and has bounced back to trade above $60,000, up 16% over the past seven days. Marathon’s aggressive acquisition strategy underscores their confidence in Bitcoin’s long-term potential and stability.
Marathon’s announcement that it intends to increase its Bitcoin holdings reflects the growing trend of companies incorporating cryptocurrencies into their balance sheets and the widespread confidence in the future of digital assets.
As large institutional investors like Marathon continue to accumulate Bitcoin, this trend could be seen as a bullish signal for the market, which could potentially spill over to other investors as well.