Author: Jesse Coghlan, CoinTelegraph; Translated by: Baishui, Golden Finance
Bitcoin miner Marathon Digital has purchased an additional $249 million worth of Bitcoin after raising $300 million through a senior notes offering.
On August 14, the miner said it used part of the proceeds from the note sale to purchase about 4,144 bitcoins at an average price of about $59,500, which brings its “strategic bitcoin reserve to over 25,000 BTC,” it added on X.
Marathon's convertible senior notes, which mature in September 2031, will generate net proceeds of approximately $292.5 million, bear an annual interest rate of 2.125% and are convertible into cash, Marathon stock or both.
Marathon said the remaining cash from the sale of the notes will be used to purchase more bitcoin and for “general corporate purposes,” which could include strategic acquisitions.
A Marathon spokesperson noted that the company considers Bitcoin “a premier strategic treasury asset” and is “employing a multi-faceted strategy to acquire Bitcoin.”
The company’s latest Bitcoin reserve follows the purchase of 2,282 BTC worth $124 million in July, which Marathon CEO and Chairman Fred Thiel said was part of a “hodl strategy” — a misspelling of “hold” that entered the cryptocurrency lexicon.
Marathon (MARA) shares closed down 2.26% at $15.14. Its shares are down nearly 34% year to date, according to Google Finance.
In after-hours trading, MARA shares fell slightly by 0.13% to $15.12. Source: Google Finance
Earlier this month, Marathon’s second-quarter earnings fell short of Wall Street expectations, coming in 9% below projected revenue of $145.1 million, but still up 78% year over year from the second quarter of 2023.
After the Bitcoin halving (the halving of mining rewards), cryptocurrency mining profitability hit an all-time low.
Miner hash prices, a measure of mining profitability, fell to a record low earlier this month, and Blockbridge reported that large public miners will struggle to turn a profit, especially Marathon, which had the highest full mining costs last month.
