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Key Takeaways

Marathon Digital plans to raise $700 million through convertible notes for Bitcoin acquisitions and debt refinancing.
The notes offer conversion into cash or stock, with specific rights and early redemption options for holders.

Marathon Digital Holdings (MARA) plans to raise $700 million through a private offering of convertible senior notes, with proceeds aimed at Bitcoin acquisitions and debt refinancing, according to a Monday press release.

The notes, maturing on March 1, 2030, will be unsecured and carry semi-annual interest payments beginning March 1, 2025. The leading Bitcoin miner intends to use up to $200 million of the proceeds to repurchase its existing convertible notes due in 2026, with the remaining funds allocated for Bitcoin purchases and general corporate purposes.

As noted in the press release, the offering targets qualified institutional buyers under Rule 144A of the Securities Act of 1933. Marathon Digital will grant initial purchasers a 13-day option to buy up to an additional $105 million in notes.

The notes will be convertible into cash, Marathon Digital common stock, or a combination of both, at the company’s discretion, with interest payments scheduled semi-annually. Final terms of the notes are pending determination.

The offering follows similar moves by MicroStrategy and Japanese firm Metaplanet in their recent debt-based bitcoin purchase strategies. MARA adopts a “HODL” approach similar to MicroStrategy, keeping all mined Bitcoin and planning to make ongoing purchases.

According to data from Bitcoin Treasuries, Marathon Digital is currently the leading publicly listed mining company in terms of Bitcoin holdings, possessing a total of 27,562 Bitcoin. This achievement places Marathon Digital at the forefront of the industry rankings for Bitcoin ownership, only behind MicroStrategy.