According to Decrypt, Bitcoin mining company Marathon Digital Holdings announced the issuance of $850 million in convertible notes, which can be expanded to $1 billion. The company plans to use $199 million to repurchase existing debt.
The remaining funds will be used to purchase Bitcoin and for general corporate purposes, including working capital, strategic acquisitions, asset expansion and repayment of other debt. Convertible notes are a type of debt instrument that is typically converted into equity in a company at a later date.
Marathon’s shares were trading at $19.86 on Tuesday, up 9%. Noteholders can ask the company to repurchase the notes for cash starting Dec. 1, 2027, and the notes mature on March 1, 2030.
