Marathon Digital buys $249m in Bitcoin after raising $300m from convertible notes

As a seasoned crypto investor with a knack for recognizing strategic moves, I must say that Marathon Digital’s latest Bitcoin purchase of $249 million is a bold and calculated step. With over two decades of market experience under my belt, I can see the potential in their long-term growth strategy.


Marathon Digital acquired approximately 15,000 Bitcoins, valued at around $249 million, by utilizing the proceeds from a $300 million bond sale offering of senior convertible notes.

On August 14th, Marathon, the largest publicly-traded Bitcoin miner by realized hash rate, announced it had secured a capital raise of approximately $300 million. After accounting for discounts and commissions, this total was adjusted to roughly $292.5 million. Subsequently, they utilized around $249 million of that sum to purchase 4,144 Bitcoins at an average price point of $59,500 each.

MARA raised $300 million from an offering of convertible senior notes that was oversubscribed. With the funds, we bought around 4,144 Bitcoins, worth approximately $249 million, significantly increasing our strategic bitcoin reserve to over 25,000 Bitcoins. Find out more here: [link]

— MARA (@MarathonDH) August 14, 2024

Money was collected by issuing senior notes with a maturity date of 2031 and a yield of 2.125%, often referred to as debt securities. These notes were sold in a privately arranged offering that attracted more demand than could be supplied, primarily to institutions deemed qualified buyers.

Marathon plans to utilize the remaining approximately $43 million on its balance sheet, primarily to acquire additional Bitcoin, as well as for various corporate endeavors such as settling debts and pursuing strategic growth opportunities.

In the scorching heat of July, I, as a crypto investor, splurged an impressive $100 million on Bitcoin (BTC). Following this substantial purchase, I made a bold announcement that I would be holding onto every single BTC mined in the future. This recent acquisition of 4,144 BTC has swelled my digital vault, now housing over 25,000 coins. With each coin currently valued at approximately $58,000, my Bitcoin stash boasts a staggering market value of a cool $1.46 billion.

Although the announcement of the purchase was made, Marathon Digital’s shares dropped by 2.26% to finish at $15.14 on Aug. 14. Moreover, the company’s Q2 2024 revenues fell below projections, amounting to $145 million as opposed to the $165.2 million earned during Q1-Q2 2024. This potential decline might be attributed to the surge in Bitcoin mining costs, which doubled while Marathon expanded its hash rate.

In my role as a researcher, I’ve found that our year-on-year growth spiked an impressive 78% for the period under review. However, in Q2 2023, our mining operations only generated $81.8 million. Nonetheless, we’ve expanded our Bitcoin mining fleet significantly, with the addition of approximately 25,000 new rigs. This brings our total to an impressive 250,000 machines. As a result, our hash rate has surged to 24.7 EH/s, outperforming some key competitors like Riot and Core Scientific.

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2024-08-15 14:04