Marathon Digital Holdings Announces Plans for $250 Million Convertible Senior Notes Offering
Marathon Digital Holdings has revealed its intention to offer $250 million in senior convertible notes in a private placement aimed at qualified institutional buyers. The company plans to utilize the net proceeds from this sale primarily to acquire additional Bitcoin, along with general corporate purposes.
The proposed offering is subject to market conditions and other factors, indicating that it may not be finalized as originally planned.
The notes, which will be unsecured senior bonds, will bear interest that will be paid semi-annually, starting in March 2025. The notes are scheduled to mature on September 1, 2031, unless redeemed earlier by the company.
This announcement follows recent financial disclosures from Marathon Digital, where the company reported a significant net loss of $199.7 million for the second quarter of 2024, compared to a loss of $9 million during the same period last year.
Additionally, Marathon Digital has recently expanded its Bitcoin holdings, acquiring an additional $100 million in cryptocurrency, bringing its total Bitcoin balance to over 20,000. This move to raise funds through convertible notes underscores the company’s ongoing focus on expanding its Bitcoin holdings despite challenging market conditions.
