Marathon Digital Holdings Announces $700 Million Convertible Senior Notes Offering, Plans to Use Proceeds to Acquire Bitcoin and Repurchase Existing Convertible Notes

U.S.-based Bitcoin miner Marathon Digital Holdings, Inc. has announced an offering of $700 million of convertible senior notes.

U.S.-based Bitcoin miner Marathon Digital Holdings, Inc. has announced an offering of $700 million of convertible senior notes.

Institutions that participate in the sale will be granted another option by the miner to purchase an additional $105 million of notes within 13 days, commencing on the date the notes are initially issued to investors. The two offerings will be issued pursuant to Rule 144A under the Securities Act of 1933.

The notes will bear interest payable semi-annually on March 1 and September 1 of each year, according to the miner. The first interest periods will be paid on March 1, 2025, and the notes will mature on September 1, 2031, unless the company redeems, converts, or repurchases the notes. The final terms of the notes will be determined at a later date.

MARA stated that $200 million of the proceeds will be used to repurchase a portion of its outstanding 2026 convertible notes. The remaining amount will be directed towards increasing the company’s Bitcoin holdings through additional purchases, alongside other general needs. The notes’ due date and maturity are scheduled for 2030, after which they can be converted into cash or shares according to MARA’s preference.

MARA’s share price declined by 5% to $19.97 during pre-market trading following the announcement.

MARA made a similar announcement in August 2024. MARA offered a private offering of $250 million of convertible senior notes and an additional $37.5 million of notes granted to the initial purchasers. The company announced that part of the proceeds will be used to purchase more Bitcoin and the rest for general corporate purposes, such as working capital and the strategic expansion of existing assets.

According to data from Bitcoin Treasuries, Marathon Digital now has 27,562 bitcoins, valued at $2.49 billion. The company recently added 720 bitcoins to its balance sheet on October 31 and 642 bitcoins on October 2. The company is the second-largest corporate holder of Bitcoin worldwide, trailing behind crypto giant and software company MicroStrategy.

The miner’s offerings echo previous announcements by Metaplanet and Microstrategy. On November 18, Metaplanet announced the issuance of one-year bonds dedicated entirely to BTC purchases to increase its Bitcoin stash. The Tokyo-listed firm issued the ordinary bonds with a guarantee, totaling 1.75 billion yen ($11.3 million) for an annualized interest rate of 0.36%.

In a related development, Microstrategy, the world’s largest corporate Bitcoin holder, disclosed that it had entered into a sales agreement with several parties, through which it had raised over $2 billion. The company also announced that it had purchased an additional 27,200 bitcoins for $2.03 billion.