Mining company Marathon Digital announced a comprehensive HODL strategy. In addition to fully holding mined Bitcoins, it also purchased an additional $100 million in Bitcoins and currently holds more than 20,000 Bitcoins on its balance sheet. In addition, Marathon Digital has followed MicroStrategy's example and will issue US$250 million in convertible bonds to buy Bitcoin. Even Michael Saylor, the founder of MicroStrategy, left a message saying that "every company should have a strategic reserve of Bitcoin"!
Adopt a comprehensive HODL strategy
Marathon Digital announced at the end of July that it had purchased an additional $100 million in Bitcoin and currently holds more than 20,000 Bitcoins on its balance sheet (as of the end of June, it held a total of 18,488 Bitcoins).
Fred Thiel, Chairman and CEO of MARA said:
Adopting a comprehensive HODL strategy reflects our confidence in the long-term value of Bitcoin. We believe Bitcoin is the best treasury reserve asset in the world and support the idea of sovereign wealth funds holding Bitcoin. We encourage both governments and businesses to hold Bitcoin as a reserve asset.
Chief Financial Officer Salman Khan also said that before last year, the company held all mined Bitcoins, but at one time it sold Bitcoins to pay for operating costs.
Given the current tailwinds for Bitcoin, including increased institutional support and improving macro conditions, we are again pursuing this strategy and focusing on increasing the amount we hold on our balance sheet. We look forward to continuing to leverage our technical expertise to support the Bitcoin and decentralized digital asset ecosystem.
Issue convertible bonds and then buy Bitcoin
Marathon Digital announced on August 12 that it plans to issue US$250 million in convertible senior notes (commonly known as convertible bonds) and sell them to qualified institutional buyers through private placement. This convertible bond is an unsecured senior note due in 2031. Debt, interest is paid semi-annually.
MARA intends to use the net proceeds from the sale of the notes to purchase additional Bitcoin and for general corporate purposes, which may include working capital, strategic acquisitions, expansion of existing assets and repayment of debt and other outstanding obligations.
Marathon Digital had just $256 million in cash and cash equivalents on hand, according to its second-quarter earnings report. First-half revenue was $310 million. As of the end of June, a total of 18,488 Bitcoins were held.
This article Mining Company Marathon Announces HODL Strategy to Purchase an Additional 100 Million Bitcoins and Issue Convertible Bonds first appeared on Chain News ABMedia.
