Bitcoin Miner Marathon Digital Proposes $700M Convertible Notes Offering to Acquire More BTC

The world’s largest public Bitcoin mining company, Marathon Digital, has announced a private offering of $700 million in convertible senior notes to institutional buyers. 

According to a press release by the firm, the proceeds from the convertible notes offering would be used primarily to acquire additional bitcoin (BTC), repurchase a portion of the existing additional convertible notes, and for general corporate purposes.

Marathon to Raise $700M for More BTC

Marathon’s announcement discloses that the notes, which are unsecured, senior obligations of the business, will be due in 2030 and will bear interest payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2025.

Initial purchasers of the notes will have the option buy an additional $105 million aggregate principal amount of the notes within 13 days beginning on and including the date on which the notes are first issued. If the company chooses, these notes can be converted into cash, shares of Marathon’s stock, MARA, or a combination of cash and MARA.

“The notes will mature on March 1, 2030, unless earlier repurchased, redeemed or converted in accordance with their terms. Subject to certain conditions, on or after March 5, 2028, MARA may redeem for cash all or any portion of the notes,” the Bitcoin mining giant stated.

The firm clarified that only $200 million of net proceeds from the sale will be channeled toward repurchasing a portion of its existing convertible notes, while the remainder will be used for more BTC acquisitions and corporate expenses.

Marathon’s BTC Stash Hits 26,747

Since the beginning of the year, Marathon has taken several steps to raise funds to acquire more BTC. The firm announced in August that it planned to raise $250 million via a private convertible notes offering to increase its bitcoin stash. A few days later, the Bitcoin miner revealed it had bought 4,144 BTC worth roughly $249 million, expanding its holdings to more than 25,000 BTC.

A tweet from November 14 shows Marathon has acquired and produced more bitcoins since then. The company now holds 26,747 BTC, solidifying its position as the public Bitcoin miner with the largest BTC holdings. 

Marathon’s reinforced strategy of keeping all mined BTC rather than selling indicates that the company’s stash would increase before the year runs out.