Marathon Digital Holdings (MARA), the largest Bitcoin mining company in the world, has announced plans for a private offering of convertible senior notes worth $250 million to qualified institutional buyers. The notes are due in 2031, with an option for initial buyers to purchase an additional $37.5 million based on market conditions.
The primary goal of this capital raise is to increase Marathon’s Bitcoin reserves. The company intends to use the net proceeds to acquire additional Bitcoin and for general corporate purposes, including working capital, strategic acquisitions, expansion of existing assets, and repayment of debt.
CEO and Chairman Fred Thiel emphasized the company’s commitment to holding Bitcoin as a treasury asset, stating that Marathon plans to “go full HODL.” As of August 6, Marathon’s total Bitcoin holdings have reached 20,818 BTC, valued at over $1.23 billion.
Despite Bitcoin’s price remaining below $60,000, Marathon’s fundraising efforts demonstrate confidence in Bitcoin’s long-term potential. The company’s actions reflect a belief in the resilience of the cryptocurrency market despite recent price volatility and challenges.
Overall, Marathon Digital Holdings’ strategic move to acquire more Bitcoin through a significant capital raise showcases their dedication to expanding their crypto holdings and positioning themselves for future growth in the digital asset space.
