Marathon to raise $500 million to buy Bitcoin and ASIC hardware

The Nasdaq-listed mining company Marathon Digital Holdings will issue convertible bonds with a face value of $500 million. The proceeds will be used to purchase Bitcoin and mining equipment.

The debt securities, maturing December 1, 2026, will be offered to accredited investors. The latter will have the option to purchase an additional $75 million of notes within the following 13 days.

Marathon Digital Holdings will reserve the right to redeem the bonds in whole or in part from December 6, 2024, through the 21 trading days prior to the maturity date. This may occur if the stock price exceeds 130% of the conversion price during the specified period.

The notes will pay semiannual coupons. The interest rate, conversion price and other material terms will be determined at the time of the offering.

In October, Marathon agreed with Silvergate Bank to open a revolving line of credit of $100 million for one year with the possibility of extension.

As of the end of the third quarter, the mining company held 7035 BTC with an estimated value of $336.3 million at the time.

In November, British Argo Blockchain announced plans to raise $57.5 million through a bond offering.

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