Marathon Digital Holdings (MARA), the largest Bitcoin (BTC) mining company in the world, has revealed plans for a private offering of convertible senior notes worth $250 million to "qualified institutional buyers," due in 2031.
The company also plans to give the initial buyers an option to purchase up to an additional $37.5 million in notes based on market conditions.
The primary goal of this capital raise, according to the August 12 announcement, is to increase Marathon's Bitcoin reserves.
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The company explained:
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.
This is part of the firm's long-term strategy to hold Bitcoin as a treasury asset. CEO and Chairman Fred Thiel underscored this commitment in a July 25 post on X, stating that the company plans to "go full HODL."
As of August 6, Marathon's total holdings have reached 20,818 BTC, valued at over $1.23 billion.
Despite the bullish sentiments deriving from the announcement, Bitcoin's price remains below $60,000 as of writing. The cryptocurrency currently trades at $59,092, a 0.55% increase over the past day and a 6.33% increase over the past week.
Spot Bitcoin exchange-traded funds (ETFs) in the US have also been performing underwhelmingly recently, with the combined net outflows reaching $89.7 million on August 9, Farside data shows.
Nonetheless, MARA's fundraising efforts demonstrate the company's confidence in Bitcoin's long-term potential, despite recent price volatility and market challenges.
