Marathon Digital Holdings Plans to Raise $1 Billion Through Convertible Notes to Acquire More Bitcoin

The Bitcoin mining giant intends to allocate $199 million of the expected $833 million in net proceeds to repurchase $212 million worth of its existing 2026 convertible notes.

Bitcoin mining company Marathon Digital Holdings (NASDAQ:MARA) announced plans to raise up to $1 billion in a convertible note offering to acquire more BTC.

The company said it expects to net about $833 million from the offering, of which $199 million will be used to repurchase some of its outstanding 2026 convertible notes.

The remaining funds will be used to acquire more Bitcoin and for other corporate purposes, including working capital, strategic acquisitions, asset expansion, and repayment of other debt.

Marathon's stock price rose over 9.6% in response to the news on Thursday.

Holders of Marathon’s convertible notes will have the option to ask for cash repayment starting 1 December 2027. The notes, which mature in 2030, offer investors the flexibility to convert them into cash, MARA stock, or a combination of both.

The move comes as Marathon and other Bitcoin miners have faced pressure from declining BTC prices and rising energy costs. Several miners have reported losses in recent quarters and have had to sell some of their Bitcoin holdings to cover their expenses.

However, Marathon has managed to remain profitable and has continued to add to its Bitcoin stash. The company now holds 15,200 BTC, which is valued at about $420 million at current prices.

MicroStrategy, another company that has used debt offerings to acquire Bitcoin, recently added another 51,780 BTC to its stash. The company’s total Bitcoin holdings are now valued at just under $30 billion, with an average purchase price of about $16.5 billion. MicroStrategy is planning to raise $1.75 billion through convertible notes to fund Bitcoin acquisitions.