Marathon Digital Holdings, one of the largest Bitcoin (BTC) miners in the United States, is seeking to raise $ 500 million in debt to buy bitcoins and create new bitcoin miners.
On Monday, the Nasdaq-listed company officially announced a special bond offering that includes a total principal of $ 500 million of its principal convertible bonds. The company also expects early buyers to have the opportunity to purchase up to $ 75 million in additional principal in the bonds 13 days after the date of the first bond issue.
The announcement notes that “the bonds will be a large unsecured liability for Marathon, and interest due half-yearly will be charged in arrears and will be settled on December 1, 2026, unless repurchased, redeemed or transferred earlier.”
According to the announcement, Marathon will use the raised capital for general business purposes such as acquiring bitcoins or building new hardware to extract bitcoins.
“This is not taken into account in any of the models,” said Michael Saylor, CEO of MicroStrategy, referring to the recently announced proposal.
Marathon shares have already reacted to the news as MARA shares have risen more than 7% in the last 24 hours and are trading at $ 75.9 at the time of writing, according to TradingView. As Cointelegraph previously reported, Mara reached a six-year high in early November, lifting the Bitcoin marathon by $ 460 million.
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In addition to achieving significant success with its equities, Marathon leads a number of investment products related to the bitcoin industry, including exchange traded funds (ETFs). As such, Marathon shares are part of several exchange-traded products (ETPs) that industrial companies track, including Crypto Industry Revolution and Tech ETFs from Volt Equity, BTC Equities Universe UCITS ETFs from Melanion Capital and Global Digital Mining Funds. Affiliated with Cosmos Asset Management and others. …
