Marathon Digital Announces $250 Million Raise to Acquire More Bitcoin

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Marathon Digital Holdings, Inc. (MARA) has announced plans to offer $250 million in convertible senior notes, with the proceeds to be used “primarily to acquire Bitcoin (BTC) and for general corporate purposes.”

According to the announcement, the notes mature in 2031 and will be offered privately to qualified institutional buyers. The company may also grant initial purchasers an option to purchase an additional $37.5 million in notes within 13 days of the initial issuance.

Marathon currently holds 20,818 BTC, worth over $1.2 billion, making it the publicly traded company with the second largest deposit of Bitcoin in their treasury. Their total BTC holdings represent almost 0.1% of the total Bitcoin supply.

The senior unsecured notes will bear interest semiannually and will mature on September 1, 2031, unless earlier redeemed, redeemed or converted. MARA retains the right to redeem the notes for cash after September 6, 2028, subject to certain conditions.

Noteholders will have the option to require MARA to redeem their notes on March 1, 2029. The notes will be convertible into cash, MARA common stock or a combination, at the company’s discretion.

Over the past week, Marathon has mined 40 of the 958 Bitcoin blocks created during that period, according to on-chain data collected by mempool.space. This is equivalent to 4.18% of the blocks mined in the last seven days. Notably, the company’s hash rate is currently 18.1 exahash per second.

The offering is subject to market conditions and has not been registered under the Securities Act, limiting sales to qualified institutional buyers under Rule 144A.

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