Bitcoin Miner Marathon Digital to Raise $250M to Acquire More BTC

Bitcoin mining company Marathon Digital Holdings has revealed plans to raise $250 million to purchase Bitcoin. In a Monday press release, the firm announced that it intends to raise the funds through a proposed private offering of convertible senior notes. This move aims to cement the firm’s leading position among BTC miners.

Marathon Wants More BTC

Explaining how the funds will be used, Marathon Digital noted in its press release:

“MARA intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes, which may include working capital, strategic acquisitions, expansion of existing assets, and repayment of debt and other outstanding obligations.”

However, the offering is not guaranteed to happen as planned since it depends on market conditions and other factors. The notes offered will be unsecured senior obligations, meaning they do not have any collateral backing them. Starting next year, interest will be paid twice yearly, in March and September. These notes are set to mature on September 1, 2031, unless the company decides to repurchase them before that date.

Not for the First Time

Marathon Digital’s commitment to buying BTC is not new. In July, the Bitcoin miner expanded its portfolio by purchasing $100 million worth of BTC, bringing its total Bitcoin stash to over 20,000 BTC.

In an accompanying press release, the firm also announced that it is returning to its strategy of keeping all BTC mined instead of selling. This renewed commitment came after the Bitcoin mining firm sold thousands of its BTC stash after experiencing financial crunches after BTC’s price crash in late 2022. As of the time of writing, Bitcoin traded at $59,500.

Current data from Bitcoin Treasures show that Marathon Digital has the highest BTC stash among its peers, with over 20,800 BTC. This metric is significantly higher than Hut 8 Corp, the mining firm with the second-largest BTC portfolio, currently at 9,109 BTC.