Marathon Digital Holdings, Inc. Raising $250 Million via Debt Offering to Buy Bitcoin
Marathon Digital Holdings, Inc., a Bitcoin miner, is planning to raise $250 million through a debt offering to increase its Bitcoin holdings. This move is reminiscent of the strategy previously employed by MicroStrategy.
Key Points:
– Marathon’s convertible senior notes will accrue semi-annual interest and will mature in September 2031.
– The offering is limited to qualified institutional buyers, with an option for additional note purchases within 13 days of issuance.
– The company’s stock declined following the announcement.
Marathon’s Bitcoin Holdings
Marathon recently invested $100 million in Bitcoin and currently possesses over 20,000 Bitcoins, making it the second-largest publicly traded company in terms of Bitcoin holdings, behind MicroStrategy.
Bitcoin Adoption Trend
MicroStrategy set a precedent in 2020 by incorporating Bitcoin into its reserve assets and using convertible notes to acquire more Bitcoin. Other companies, such as Fintech startup Fold and healthcare company Semler Scientific, have followed suit. Larger corporations like Tesla and Block have also integrated Bitcoin into their strategies.
After revealing their debt offering, Marathon’s stock experienced a more than 10% decline on Monday, while the price of Bitcoin surpassed $58,600.
Source : www.investopedia.com