Marathon Digital Plans to Buy Bitcoin and Mining Machines, Raises $500M in Debt

One of the largest Bitcoin mining companies in the States – Marathon Digital – plans to raise $500 million through the issuance of senior convertible notes. The firm wants to use the proceeds to buy bitcoin and BTC mining machines.

Founded over a decade ago, Marathon Digital Holdings is among the largest publicly-traded BTC mining companies.
The firm’s announcement from earlier on November 15th outlined its plans to “offer, subject to market and other conditions, $500,000,000 aggregate principal amount of convertible senior notes due 2026.”
The company’s offering will be a private one to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. If certain conditions are met, the total raised amount could rise by an additional $75 million.

“Marathon also expects to grant the initial purchasers of the notes an option, for settlement within a period of 13 days from, and including, the date the notes are first issued, to purchase up to an additional $75,000,000 principal amount of notes.”

These notes will be unsecured obligations of the company and will accrue interest payable twice per year, and will mature on December 1st, 2026, unless repurchased, redeemed, or converted earlier.
The company plans to utilize the net proceeds for “general corporate purposes, including the acquisition of bitcoin or bitcoin mining machines.”
It’s worth noting that Marathon will not be the first publicly-traded large company to raise debt to purchase bitcoin.
Michael Saylor’s NASDAQ-listed giant – MicroStrategy – has done the same on a few occasions, ultimately raising more than $1 billion in order to buy BTC.