Marathon Digital Holdings Plans to Offer $250M in Convertible Senior Notes to Acquire Bitcoin

Marathon currently holds 20,818 BTC, amounting to over $1.2 billion, being the publicly listed company with the second-largest Bitcoin stash

Marathon Digital Holdings, Inc. (NASDAQ:MARA), a leading digital asset technology company, has announced plans to raise $250 million through a private offering of convertible senior notes. The proceeds from this offering will be primarily used to acquire Bitcoin (BTC) and for general corporate purposes.

The notes will mature in 2031 and will be offered to qualified institutional buyers in a private placement. Marathon may also grant the initial purchasers an option to buy an additional $37.5 million in notes within 13 days of the first issuance.

As of June 30, Marathon held 20,818 BTC, valued at over $1.2 billion, making it the publicly listed company with the second-largest Bitcoin stash in its treasury. In total, Marathon's BTC holdings constitute nearly 0.1% of Bitcoin's total supply.

The unsecured, senior notes will bear semi-annual interest and mature on September 1, 2031, unless repurchased, redeemed, or converted earlier. Marathon retains the right to redeem the notes for cash after September 6, 2028, subject to certain conditions.

Noteholders will have the option to require Marathon to repurchase their notes on March 1, 2029. The notes will be convertible into cash, Marathon common stock, or a combination, at the company’s discretion.

Marathon is currently ranked as the 14th largest Bitcoin miner in the world, with an average hash rate of 18.1 exahash per second (EH/s). In the past seven days, Marathon has mined 40 out of the 958 Bitcoin blocks created in the period, according to on-chain data gathered by mempool.space. This equates to 4.18% of the blocks mined in the last seven days.

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