Marathon Digital Holdings to raise $250 million to buy more Bitcoins

Marathon Digital Holdings, one of the largest publicly traded Bitcoin miners in the US, has announced plans to raise $250 million through a private offering of convertible notes. The funds will primarily be used to expand Marathon’s Bitcoin holdings.

BREAKING: 🇺🇸 MARATHON DIGITAL HOLDINGS TO RAISE $250M TO BUY MORE #BITCOIN pic.twitter.com/6NKbfyDPvh

— Bitcoin Magazine (@BitcoinMagazine) August 12, 2024

The Nevada-based company operates a fleet of miners, producing around 579 bitcoins in July. Marathon’s balance sheet contains over 20,000 Bitcoins worth over $1.1 billion.

In early July, Marathon bought $100 million worth of Bitcoin on the open market as part of its long-term “hodl” strategy. The company said it will keep all newly mined Bitcoin as reserves.

This latest move to raise capital for direct Bitcoin purchases mirrors the strategy pioneered by MicroStrategy. As of 2020, MicroStrategy has issued debt and sold stock to accumulate over 220,000 Bitcoins in its corporate treasury.

Marathon aims to position itself at the top of the nascent but rapidly evolving Bitcoin mining and services industry by aggressively expanding the Bitcoin stack.

This fundraising approach allows public equity investors indirect exposure to Bitcoin. With growing adoption from firms such as Microstrategy, Semler Scientific and Metaplanet, bitcoin is emerging as a corporate treasury asset class.