Bitcoin miner Marathon Digital intends to sell $250 million worth of convertible notes via a private placement. It will use the proceeds to buy Bitcoin and fulfill general corporate obligations.
The official statement underlined,
“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.”
The world’s largest Bitcoin mining firm’s shares closed Friday’s trading session at $17.03. During the pre-market hours on Monday, it was trading at $16.34, down 4.05%.
The firm disclosed that the notes will be unsecured, senior obligations of MARA. It will pay out interest every six months, i.e. on March 1 and September 1 every year.
The notes will mature on September 1, 2031. Notably, on or after September 6, 2028, MARA may redeem for cash “all or any portion of the notes.”
Marathon Digital is the second largest corporate holder of BTC. Standing next to Michael Saylor’s MicroStrategy, the miner owns around 20,800 BTC, roughly worth $1.2 billion according to the current market price of the asset.
The firm sold more than half the BTC it mined in Q2 to cover its operating costs. Nevertheless, it recently unveiled that it stacked up $100 million worth of BTC in the open market. In fact, the firm also went on to re-adopt the 'Full HODL' Strategy
Marathon Digital recently also diversified its mining operations. As reported by blocmates, the firm started mining proof-of-work crypto asset Kaspa [KAS].
As far as the timeline is concerned, Marathon started contemplating mining Kaspa and diversifying its revenue around a year back. It ended up successfully deploying its first Kaspa ASICs in September 2023 and soon started scaling its operations.
As of the end of June, the firm had mined over 93 million KAS. At the time, they were worth around $15 million.
