Marathon Digital Announces $800M Convertible Notes Offering to Acquire More Bitcoin

As bitcoin (BTC) continues to flirt with the $100,000 target, institutional investors are accumulating the cryptocurrency in droves or taking steps to expand their portfolios.

The latest entity on this list is the Bitcoin mining company Marathon Digital, which just announced a multi-million dollar senior offering to raise additional money to purchase additional bitcoins.

Marathon Digital to Acquire More BTC

According to a press release, Marathon Digital is offering $805 million in 0.00% convertible senior notes due 2031 in a private arrangement to qualified institutional investors. The main offering involves notes worth $700 million; however, the initial purchasers will have the option to buy an additional $105 million convertible notes within 13 days beginning on the date the notes were first issued.

As usual, Marathon’s offerings are subject to market conditions, and there is no guarantee that the terms will be completed. The notes are unsecured, senior obligations of the Bitcoin mining company; hence, they are not expected to bear any interest. In the event of any special interest, Marathon Digital will pay semi-annually in arrears on June 1 and December 1 of each year, starting June 1, 2025.

“The notes will be convertible into cash, shares of MARA’s common stock, or a combination of cash and shares of MARA’s common stock, at MARA’s election. Prior to March 1, 2031, the notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date,” Marathon Digital noted.

Notably, Marathon intends to use $50 million of the net proceeds from the offering to repurchase a portion of its existing convertible notes that are due in 2026, with the remainder going towards general corporate purposes and acquiring additional BTC.

Marathon’s Holdings Worth $3B

The new announcement comes over a week after Marathon Digital increased its bitcoin holdings by purchasing 5,771 BTC worth $573 million. Following the acquisition, the company now holds 33,875 BTC, worth around $3 billion at bitcoin’s current value of $95,171.

Additionally, Marathon has completed several convertible note offerings to raise additional capital to buy more BTC. The firm raised $1 billion in mid-November, although it initially planned to raise $700 million through the offering. The entity also raised $250 million in August to purchase more bitcoins.