August 12, 2024
Marathon Digital Holdings, Inc. (MARA) has revealed its intention to issue $250 million in convertible senior notes. The funds raised will be primarily used to purchase Bitcoin (BTC) and for other corporate needs. These notes, which are due in 2031, will be privately offered to eligible institutional buyers. The company might also provide the initial buyers with an opportunity to purchase an extra $37.5 million in notes within a 13-day period from the first issuance.
At present, Marathon holds 20,818 BTC, which is valued at over $1.2 billion. This makes them the second-largest publicly listed company in terms of Bitcoin holdings in their treasury. Their total BTC holdings represent nearly 0.1% of Bitcoin’s total supply.
The unsecured senior notes will accrue interest semi-annually and will mature on September 1, 2031, unless they are repurchased, redeemed, or converted beforehand. After September 6, 2028, MARA reserves the right to redeem the notes for cash, subject to certain conditions.
On March 1, 2029, noteholders will have the choice to demand MARA to buy back their notes. These notes can be converted into cash, MARA common stock, or a mix of both, as per the company's decision. In the past week, Marathon has mined 40 out of the 958 Bitcoin blocks that were created, as per data collected by mempool.space. This accounts for 4.18% of the blocks mined in the last seven days. The company's hash rate currently stands at 18.1 exahash per second.
About Marathon Digital
Marathon Digital Holdings, Inc. (MARA) is a global leader in digital asset compute. The company develops and deploys innovative technologies to build a more sustainable and inclusive future. MARA secures the world’s preeminent blockchain ledger and supports the energy transformation by converting clean, stranded, or otherwise underutilized energy into economic value.
The company operates in the Digital Currency Blockchain segment and owns cryptocurrency mining machines and a data center to mine digital assets. These cryptocurrency machines are located in the United States. The company provides regular updates on its Bitcoin production and mining operation. For instance, they have recently announced their Bitcoin production updates for July 2024.
Website: https://www.mara.com/
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