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Marathon Digital Purchases $250M in Bitcoin (BTC) After Raising $300M Through Senior Notes

Marathon Digital Holdings (MARA), one of the largest publicly traded Bitcoin mining companies, has bought approximately $249 million worth of Bitcoin.

The purchase was funded by successfully closing a $300 million senior note offering.

MARA Raises $300M in Private Note Offering

In an August 14 press release, Marathon Digital Holdings (MARA) announced the completion of a private offering of 2.125% convertible senior notes due in September 2031.

These notes, sold to qualified institutional buyers under Rule 144A of the Securities Act of 1933, were highly sought after, leading to the initial investors fully exercising their option to purchase an additional $50 million in notes.

This brought the total offering to $300 million, with net proceeds amounting to approximately $292.5 million after deducting discounts and commissions.

Between August 12 and August 14, Marathon Digital utilized part of the proceeds to acquire around 4,144 BTC at an average price of $59,500 each. This purchase increased the firm’s strategic Bitcoin reserve to over 25,000 BTC.

This recent accumulation follows a previous one in July, where the firm secured 2,282 BTC valued at $124 million. The company plans to use the remaining funds for further Bitcoin purchases and general corporate purposes, which may include strategic acquisitions, asset expansion, working capital, and debt repayment.

The notes, which are unsecured senior obligations, will bear an interest rate of 2.125% per annum, with payments starting on March 1, 2025, and will mature on September 1, 2031, unless repurchased, redeemed, or converted earlier under specific terms.

MARA’s Senior Note Offering

Starting September 6, 2028, the company has the option to redeem the notes for cash if its stock price reaches at least 130% of the conversion one over a defined period.

Noteholders have the right to require Marathon to repurchase all or part of their notes for cash on March 1, 2029, or if certain significant corporate events occur. In such cases, the miner may be required to increase the conversion rate for those who choose to convert its notes in connection with these events.

The notes are convertible into cash, shares of the company’s common stock, or a combination of both at its discretion. Before March 1, 2031, conversion is allowed only under certain conditions and during specific periods.

However, after that date, conversion can occur at any time until two trading days before the maturity date. The initial conversion rate is set at 52.9451 shares of MARA’s common stock per $1,000 principal amount, equivalent to approximately $18.89 per share, with the rate subject to adjustment based on the occurrence of certain events.

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