Marathon Holdings has raised $1 billion to acquire Bitcoin primarily. These funds were raised through the private offering of 0.00% convertible senior notes due in 2030. The miner is the second largest Bitcoin corporate holder with 27,562 Bitcoin.
Two days ago, the company announced increasing its convertible note offering from $700 million to $850 million. These notes were issued to institutional investors falling under specific criteria and qualifications through private selections.
MARA raises $1 billion offering for 0% convertible senior notes due 2030
$1 Billion. 0% interest.
MARA has completed the largest convertible notes offering ever amongst BTC miners.
The mission, as always: Provide value. Acquire #bitcoin. pic.twitter.com/BIFckTaial
— MARA (@MARAHoldings) November 21, 2024
Marathon Digital announced in a press release on November 21st that the funds raised will be used to expand its Bitcoin holdings and purchase back the existing convertible notes due in 2026. The remaining sum will be used for general corporate needs like working capital, asset expansion, and strategic acquisitions.
The leading U.S. bitcoin miner shared its net amount of $980 million, calculated after deducting discounts and commissions. The company will repurchase its $212 million worth of 2026 convertible notes in privately negotiated transactions.
According to the press release, the notes are unsecured, senior obligations of the mining company, and will not bear regular interest rates. At the same time, the principal amount of the notes will not accumulate. The notes are flexible, with an option to convert them into cash, MARA’s common stock shares, or a combination of both shares and cash.
Data from Bitcoin Treasuries shows Marathon Digital Holdings’s balance sheet currently holds 27,562 Bitcoin worth $2.66 billion at current market prices. The Bitcoin miner is the second largest Bitcoin corporate holder after Microstrategy.
Public companies continue to buy more Bitcoin
The news comes amid rising demand for Bitcoin among publicly listed firms and institutions. Recently, Microstrategy announced it had purchased an additional 51,780 Bitcoin at an average price of $88,627 for a total of $4.6 billion. The purchase cemented the company’s reign as the largest Bitcoin corporate holder. According to Bitcoin Treasuries, Microstrategy has 331,200 Bitcoin worth $32.18 billion.
The company has set the pace for other companies to investigate adopting Bitcoin as part of their reserves. Recently, Microstrategy’s chairman, Michael Saylor, confirmed he will present a Bitcoin investment strategy to the board of directors of tech giant Microsoft. The Bitcoin maximalist announced the news through an X space hosted by VanEck.
In mid-November, an advanced battery materials provider announced it had accepted Bitcoin as the company’s strategic reserve asset and had made its first Bitcoin purchase. The company said in a statement that the decision to adopt Bitcoin was initiated to boost shareholder value and capitalize on the digital asset’s performance to hedge against inflation.
The company noted that it will seclude 60% of its excess cash for Bitcoin purchases and conversion of interest earnings from money market accounts to Bitcoin. The firm also highlighted that it will commit future capital raises to increase its Bitcoin holdings over time.
The Bitcoin frenzy among institutional-sized investors has soared significantly after pro-Bitcoin candidate Donald Trump emerged victorious in the U.S. elections held on November 5th. The candidate promised the crypto community a more favorable environment in which to thrive. As a result, spot Bitcoin ETFs have witnessed significant inflows. Data from Sosovalue shows that the funds have witnessed $796.05 million in inflows and finally crossed the $100 billion mark in assets under management.
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