Marathon Digital Plans to Buy Bitcoin and Mining Machines, Raises $500M in Debt

One of the largest Bitcoin mining companies in the States – Marathon Digital – plans to raise $500 million through the issuance of senior convertible notes. The firm wants to use the proceeds to buy bitcoin and BTC mining machines.

• Founded over a decade ago, Marathon Digital Holdings is among the largest publicly-traded BTC mining companies.
• The firm’s announcement from earlier on November 15th outlined its plans to “offer, subject to market and other conditions, $500,000,000 aggregate principal amount of convertible senior notes due 2026.”
• The company’s offering will be a private one to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. If certain conditions are met, the total raised amount could rise by an additional $75 million.

• “Marathon also expects to grant the initial purchasers of the notes an option, for settlement within a period of 13 days from, and including, the date the notes are first issued, to purchase up to an additional $75,000,000 principal amount of notes.”

• These notes will be unsecured obligations of the company and will accrue interest payable twice per year, and will mature on December 1st, 2026, unless repurchased, redeemed, or converted earlier.
• The company plans to utilize the net proceeds for “general corporate purposes, including the acquisition of bitcoin or bitcoin mining machines.”
• It’s worth noting that Marathon will not be the first publicly-traded large company to raise debt to purchase bitcoin.
• Michael Saylor’s NASDAQ-listed giant – MicroStrategy – has done the same on a few occasions, ultimately raising more than $1 billion in order to buy BTC.