Marathon Digital Holdings, a leading Bitcoin mining company, has revealed plans to offer $250 million in convertible senior notes through a private offering to qualified institutional buyers. The company intends to use the proceeds to acquire additional Bitcoin and for general corporate purposes, strengthening its position in the cryptocurrency market.
The proposed offering, subject to market conditions and other factors, is not guaranteed to be completed under the current terms. The notes will be unsecured, senior obligations with interest payable semi-annually on March 1 and September 1, beginning in 2025, and will mature on September 1, 2031, unless repurchased earlier.
This strategic move comes on the heels of Marathon Digital reporting a significant net loss of $199.7 million in Q2 2024, a stark contrast to the $9 million loss reported in the same quarter the previous year. Despite the financial setback, the company continues to bolster its Bitcoin holdings. Late last month, Marathon announced the purchase of an additional $100 million in Bitcoin, bringing its total balance to over 20,000 BTC.
Marathon Digital’s commitment to expanding its Bitcoin reserves underscores its confidence in the long-term value of the cryptocurrency, even as the company navigates financial challenges. The offering of convertible notes marks a key step in its strategy to secure its leadership in the Bitcoin mining industry.