Bitrabo Editorial
Marathon Digital Holdings, the largest public Bitcoin miner valued at over $5 billion, is set to boost its Bitcoin holdings through a financial move by issuing $250 million in convertible senior notes.
The Chairman and CEO, Fred Thiel revealed a strategy inspired by Michael Saylor to raise capital through notes issuance to buy more Bitcoin. Thiel shared his intention to purchase more BTC in a tweet.
Acquisition of $250 Million Worth of Bitcoin
The company plans to issue $250 million in convertible senior notes due 2031 to qualified institutional buyers. An option allowing initial purchasers to acquire up to an additional $37.5 million in notes is also on the table for a limited period.
The notes are unsecured senior obligations accruing interest semi-annually and are set to mature in 2031. There are provisions for redemption before maturity and conditions for conversion post particular dates.
Marathon intends to use the funds primarily for acquiring more Bitcoin and other corporate needs such as working capital, acquisitions, and debt repayment, among others.
The sale of notes is subject to compliance with securities laws and will be executed through a private offering memorandum. The company aims to engage potential investors within the legal framework.
In a previous move in July, Marathon purchased $100 million worth of BTC, signaling a shift towards holding Bitcoin as a strategic reserve asset. Thiel confirmed the purchase to reinforce their treasury strategy in a tweet.
Currently, the price of BTC stands at $59,645.