MARA to Raise $250 Million for Bitcoin Acquisition

MARA, formerly known as Marathon Digital, plans to issue $250 million in convertible bonds. The funds will be used to acquire digital gold as part of a “full hodl” strategy concerning bitcoin reserves and for general corporate purposes.

MARA Announces Proposed Private Offering of $250 Million of Convertible Senior Notes https://t.co/oYRaAHvHbU

— MARA (@MarathonDH) August 12, 2024

The senior unsecured securities, maturing in 2031, are intended for qualified institutional investors through a private offering.

Buyers will also be offered an option to purchase additional bonds worth $37.5 million.

In July, MARA increased its holdings of the leading cryptocurrency by 2282 BTC, reaching a total of 20,818 BTC ($1.14 billion). Production for the last reported month amounted to 692 BTC.

On July 25, the company added $100 million worth of bitcoin to its balance sheet. MARA CEO Fred Thiel expressed commitment to the “full hodl” strategy.

This approach involves retaining mined coins with further purchases of digital gold. The latter will be financed through cash and capital raising.

MARA began investing in the leading cryptocurrency in January 2021, starting with $150 million.

Earlier, Bernstein noted favorable prospects for the shares of Marathon, Riot, and CleanSpark, which are poised to increase their share in the bitcoin mining market, partly through capital raising.