U.S.-based Marathon Digital Holdings has announced a private offering of $700 million in convertible senior notes. This move aims to strengthen its market position in Bitcoin and optimize its financial structure.
Private Bond Offering
Marathon Digital Holdings is planning a $700 million issuance of convertible senior notes. These notes will be offered to institutional investors through a private listing in accordance with Rule 144A under the Securities Act of 1933. Participants will also have the option to purchase an additional $105 million in notes within 13 days of the initial issuance.
Utilization of Raised Funds
The company intends to use up to $200 million from the total $700 million to repurchase part of its previously issued notes due in 2026. The rest of the proceeds will be used for acquiring Bitcoin and general corporate purposes. The notes are set to mature in 2030, with options for conversion into cash or shares at MARA's discretion.
Market Strategy and Plans
Currently, Marathon Digital holds 27,562 bitcoins valued at $2.49 billion. The company continues to actively accumulate Bitcoin reserves to bolster its position in the cryptocurrency market. Similar strategies are employed by companies like Metaplanet and Microstrategy, which are also issuing bonds to increase their Bitcoin holdings.
This fundraising effort allows Marathon Digital Holdings to improve its financial position and strengthen its presence in the Bitcoin market. The offering highlights the growing institutional interest in cryptocurrency investments.
