Marathon Digital Acquires $250M in Bitcoin Following $300M Note Sale

Marathon Digital Holdings has expanded its Bitcoin reserve by acquiring 4,144 BTC between Aug. 12 and 14. The company purchased these assets at an average price of $59,500 per Bitcoin, totaling approximately $249 million.

Following this purchase, Marathon’s Bitcoin holdings have grown to more than 25,000 BTC, solidifying its position among the top corporate Bitcoin holders.

This acquisition was funded through a recently completed $300 million private offering of 2.125% convertible senior notes, announced on Aug. 14. The offering saw strong demand from institutional investors, who fully exercised their option to purchase an additional $50 million in notes, increasing the total proceeds to $300 million. After accounting for expenses and commissions, Marathon netted approximately $292.5 million from the offering.

The notes, which mature on Sept. 1, 2031, will bear an annual interest rate of 2.125%, with payments beginning on March 1, 2025. The notes are unsecured and convertible into cash, shares of Marathon’s common stock, or a combination of both, based on the company’s discretion. Conversion rights will be limited until March 1, 2031, after which conversion can occur at any time until the notes’ maturity.

In addition to acquiring Bitcoin, Marathon plans to use the remaining funds from the note offering for various corporate purposes, including potential strategic acquisitions, working capital, and debt repayment. This recent purchase follows a similar move in July when the company acquired 2,282 BTC for approximately $124 million.

Marathon, which already holds a substantial Bitcoin reserve compared to its industry peers, has resumed its strategy of retaining all mined Bitcoin on its balance sheet after previously selling a portion to fund operating costs.

Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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