Marathon Digital Plans to Raise $250 Million in Private Placement to Buy Bitcoin
Date: 2024-08-13 Author: Henry Casey Categories: BUSINESS
Marathon Digital, known for its massive bitcoin mining operations, has announced plans to raise $250 million through a private placement of convertible notes. The funds will be used to buy bitcoin and for general corporate purposes. The notes will pay interest twice a year and mature on Sept. 1, 2031. The interest rate and conversion rate will be determined during the pricing process, the Fort Lauderdale, Florida-based company said.
Marathon Digital already holds over 20,800 bitcoins, more than double the holdings of its closest competitor, Hut 8. According to bitcointreasuries.com, these holdings are worth about $1.2 billion at current market prices. The company notes that it sold 51% of its mined bitcoin in the second quarter to cover its operating expenses. However, Marathon recently announced that it had purchased $100 million worth of bitcoin on the open market and reiterated its intention to hold all of its bitcoin assets on its balance sheet.
The company's shares fell 3.2% in pre-market trading on the news.
