Key Points
- Marathon Digital is set to sell $700 million of private convertible notes for debt repayment, Bitcoin purchases, and corporate needs.
- The Bitcoin mining company has also granted initial buyers a 13-day option to acquire an additional $105 million in notes.
Marathon Digital, a prominent Bitcoin mining entity, has announced its intention to offload $700 million worth of convertible notes through a private placement. The funds raised will be directed towards the purchase of Bitcoin and other corporate purposes.
The Florida-based firm revealed in a press release that the notes would accrue interest payable semi-annually and would mature on March 1, 2030. Noteholders will have the flexibility to convert these notes into cash, Marathon stock shares, or a combination of both. Moreover, Marathon has provided initial purchasers with an option to buy an extra $105 million in notes within a 13-day period.
Marathon’s Bitcoin Acquisition and Debt Repayment Plans
The company plans to use up to $200 million from the proceeds to repurchase its 2026 convertible notes. The remaining funds will be allocated for Bitcoin acquisitions and operational expenses. From March 2028, redemption options will be made available, and in December 2027, noteholders can request a buyback, as stated in the press release.
As per data from Bitcoin Treasuries, Marathon currently holds approximately 25,945 BTC, which at present prices is valued at around $2.3 billion.
The offer, open only to qualified institutional buyers as per Rule 144A of the U.S. Securities Act, is subject to market conditions. Interest rates and other terms will be finalized at the time of pricing, according to Marathon. This initiative comes after Marathon’s earlier $250 million convertible note offering this year, which matures in 2031 and was aimed at Bitcoin purchases and corporate funding. These notes also accrue semi-annual interest.