Breaking: MARA Holdings Announces Raising $805M More To Buy BTC

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In the latest announcement, Marathon Digital has revealed its plans to offer $700 million in convertible senior notes due 2031 in a private offering, subject to market conditions and other factors. MARA also expects to grant to the initial purchasers of the notes an option to purchase, within 13 days beginning on, and including, the date on which the notes are first issued, up to an additional $105 million aggregate principal amount of the notes.

The company noted that the notes will be unsecured, senior obligations of MARA, with no expected interest or accrete. Special interest will be payable semi-annually in arrears on June 1 and December 1 of each year, beginning on June 1, 2025. The notes will be offered and sold to qualified institutional buyers.

Notably, the notes will be convertible into cash, shares of MARA’s common stock, or a combination of cash and shares of MARA’s common stock at MARA’s election. MARA expects to use up to $50 million of the net proceeds from the sale of the notes to repurchase a portion of its existing convertible notes due 2026 in privately negotiated transactions, with the rest used for general corporate purposes.

MARA’s Increasing BTC adoption

Just recently, Marathon acquired 6,474 Bitcoin (BTC) for over $600 million. The move comes amid a broader trend of institutional adoption of Bitcoin, with an increasing number of public companies now holding BTC on their balance sheets.

Marathon Digital also shared its November 2024 Bitcoin Production Update. Notably, its Energized Hash Rate Increased 15% to 46.1 EH/s. Its total BTC HODL is currently 34,959 BTC valued at $3.3B. 12,965 BTC were acquired YTD at an average price of $77,692. It has achieved an YTD BTC Yield Per Share of 37.2%. 

MicroStrategy, MARA, and Metaplanet are strategically expanding their Bitcoin (BTC) investments by offering convertible notes to institutional investors. The companies have already strengthened their Bitcoin holdings and reported strong yields, emphasizing their commitment to the digital asset. MARA’s latest purchase further solidifies its place in the growing number of companies betting on Bitcoin as a long-term asset.