Key Points
- Marathon Digital Holdings has increased its convertible debt offering to $850 million to purchase more Bitcoin.
- The company plans to use the funds for Bitcoin acquisitions, corporate growth, and debt repayment.
Marathon Digital Holdings, a Bitcoin mining company, has expanded its convertible note offering from $700 million to $850 million. This move is part of the company’s strategy to acquire more Bitcoin. The announcement was made in a press release on Tuesday, November 19.
The 0.00% notes, which are due to mature on March 1, 2030, will be sold privately to qualified institutional buyers. The sale is expected to conclude on November 20, subject to standard conditions.
Note Holders and Company Plans
Note holders can request Marathon to buy back the notes for cash starting from December 1, 2027. This is also applicable in case of certain corporate changes. The company anticipates net proceeds of approximately $833 million from the sale.
Marathon plans to allocate about $199 million to repurchase its existing convertible notes due in 2026. The remaining funds will be directed towards Bitcoin acquisitions, corporate expansion, and debt repayment.
Following this announcement, Marathon’s shares experienced a 2.4% increase in pre-market trading, reaching $18.5, according to Nasdaq data.
Previous Announcements and Bitcoin Holdings
This news comes shortly after the Florida-based company announced a $700 million private convertible note offering. The funds from this offering were intended for debt repayment, Bitcoin purchases, and corporate needs. Note holders will have the option to convert their notes into cash, Marathon stock, or a combination of both.
As per data from Bitcoin Treasuries, Marathon currently holds around 25,945 BTC, which is valued at approximately $2.3 billion at current prices.