Crypto miner aims to raise funds for Bitcoin acquisition and corporate growth through convertible notes.
Key Takeaways
- MARA plans to offer $250 million in convertible senior notes due 2031 to qualified institutional buyers.
- Proceeds will be used to acquire additional bitcoin and fund general corporate purposes.
Marathon Digital Holdings, Inc. (MARA) has announced plans to offer $250 million in convertible senior notes, and the proceeds will be used “primarily to acquire Bitcoin (BTC) and for general corporate purposes.”
According to the announcement, the notes are due in 2031 and will be offered privately to qualified institutional buyers. The company may also grant initial purchasers an option to buy an additional $37.5 million in notes within 13 days of the first issuance.
Marathon currently holds 20,818 BTC, amounting to over $1.2 billion, being the publicly listed company with the second-largest Bitcoin stash in their treasury. Their total BTC holdings are nearly 0.1% of Bitcoin’s total supply.
The unsecured, senior notes will bear semi-annual interest and mature on September 1, 2031, unless repurchased, redeemed, or converted earlier. MARA retains the right to redeem the notes for cash after September 6, 2028, subject to certain conditions.
Noteholders will have the option to require MARA to repurchase their notes on March 1, 2029. The notes will be convertible into cash, MARA common stock, or a combination, at the company’s discretion.
Over the past week, Marathon mined 40 out of the 958 Bitcoin blocks created in the period, according to on-chain data gathered by mempool.space. This is equivalent to 4.18% of the blocks mined in the last seven days. Notably, the firm’s hash rate is currently at 18.1 exahash per second.
The offering is subject to market conditions and has not been registered under the Securities Act, limiting sales to qualified institutional buyers under Rule 144A.