The market is tingling with sensation as Bitcoin touched the $60k mark this weekend. Marathon Digital Holdings has announced its plan to raise $250 million through convertible senior notes. The company’s offering of convertible senior notes, due in 2031, is aimed at qualified institutional buyers. These notes, unsecured and senior obligations of Marathon, will bear interest payable twice a year and mature on September 1, 2031.
Marathon to deploy this fund to buy Bitcoin
Marathon plans to deploy this capital primarily to acquire additional Bitcoin and fund general corporate purposes. This could include working capital, strategic acquisitions, and the expansion of existing assets.
Marathon stated:
“MARA intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes, which may include working capital, strategic acquisitions, expansion of existing assets, and repayment of debt and other outstanding obligations.”
Marathon’s decision to raise funds for Bitcoin acquisition comes as the cryptocurrency market shows signs of recovery after a prolonged downturn. By choosing to invest heavily in Bitcoin, Marathon is positioning itself to capitalize on potential future price appreciation.
The convertible nature of these notes adds an interesting dimension to the offering. At the company’s discretion, holders will have the option to convert their notes into cash, Marathon’s common stock, or a combination of both.
While the offering is subject to market conditions and other factors, Marathon’s move reflects a growing trend of public companies integrating Bitcoin into their treasury strategies. As one of the largest Bitcoin miners, Marathon’s continued investment in the cryptocurrency underscores its long-term commitment to the digital asset space.
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