Crypto mining giant Marathon plans $700m convertible note to buy Bitcoin

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As a seasoned researcher with a keen eye for financial trends in the cryptocurrency market, I find Marathon Digital’s latest move to be an intriguing one. With their repeated forays into convertible note offerings and Bitcoin purchases, it seems they are doubling down on their commitment to Bitcoin. This strategy, if successful, could potentially position them as a major player in the crypto mining industry.

Marathon Digital makes an announcement about a $700 million private offering for convertible notes, which they plan to use for settling debts, purchasing Bitcoins, and addressing other business requirements.

As a researcher, I’d like to share that Marathon Digital, a Bitcoin mining firm, has announced its intention to offer $700 million worth of convertible notes in a private placement. The funds raised will be primarily used for the acquisition of Bitcoins and various corporate objectives.

On Monday, November 18th, I announced that our Florida-based company is issuing notes with semi-annual interest payments due on March 1st, 2030. These note holders will have the flexibility to convert their investments into cash, Marathon shares, or a mix of both. Additionally, we’ve provided initial purchasers with a 13-day window to acquire an additional $105 million in notes.

Marathon to buy more Bitcoin

Approximately $200 million of the earnings will go towards buying back Marathon’s 2026 convertible bonds, with the rest being allocated for Bitcoin acquisitions and regular business operations. As stated in the press release, redemption options will be accessible starting March 2028, and noteholders have the option to request a buyback as early as December 2027.

Based on the figures provided by Bitcoin Treasuries, Marathon is currently holding approximately 25,945 Bitcoins, which amounts to a staggering $2.3 billion when considering today’s market values.

This new offering, exclusive to institutional investors who meet specific qualifications under Rule 144A of the U.S. Securities Act, is contingent on market conditions. The specifics like interest rates and other terms will be determined during the pricing process, Marathon noted. This action comes after Marathon’s $250 million convertible note offering earlier in the year, which matures in 2031 and was intended for Bitcoin acquisitions and corporate financing. Similarly to those notes, this new one also provides semi-annual interest payments.

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2024-11-18 16:31