Marathon Digital Offers $250M Debt Offering To Buy Bitcoin

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Marathon Digital Holdings (MARA), a leading Bitcoin mining giant has announced its intention to offer $250 million in unsecured convertible senior notes, which are due on September 1, 2031. According to the press release, this offering is contingent upon market conditions and other relevant factors. 

Marathon to Utilize the Funds for Growth Opportunities

The notes will be issued in a private placement, targeting institutional buyers who qualify under Rule 144A of the Securities Act. In addition to the initial $250 million, the United States-based company plans to grant the initial purchasers an option to buy an additional $37.5 million in notes. This option can be exercised within 13 days, starting when the notes are issued first.

Notably, the funds raised through this offering will likely be used for general corporate purposes, including acquiring additional Bitcoin, capital expenditures, debt repayment, or investments in growth opportunities. By choosing to issue convertible notes, the company offers investors the opportunity to benefit from potential equity appreciation while securing debt financing.

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Marathon Digital Continues to Lead the Pack

The summer heat has been intense, not just in temperature but in the pressure Bitcoin miners have faced since the April Bitcoin halving event. Despite this, Marathon Digital continues to lead the pack, standing tall as the largest public miner by market capitalization, valued at over $5 billion.

The company recently saw a 17% increase in Bitcoin production, totaling 692 BTC in July. This growth is coupled with a 5% increase in its operational hash rate, now at 27.5EH/s. Recall that, MARA has adopted a HODL strategy, retaining all the bitcoin it mines, and as of July 31, it held a significant 20,818 BTC. Also, the company has signaled its intention to make strategic open market bitcoin purchases periodically, bolstering its treasury.

MicroStrategy Upsizes Convertible Note Offering

In June, MicroStrategy, the company known for owning the most Bitcoins, confirmed an increase in its convertible note offering by 40%, bringing the total to a whopping $700 million. The notes will provide a 2.25% annual yield and focus on institutional investors via a private offering.

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Meanwhile, the Tysons Corner, Virginia-based company revealed that these notes would be unsecured senior obligations, to mature in June 2032. Additionally, MicroStrategy granted initial buyers the option to purchase an extra $100 million in notes within 13 days of the initial issuance.

According to the company’s CEO Michael Saylor, the money from the offering will be used to acquire more Bitcoin and for general corporate purposes.

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