Marathon Digital Holdings, one of the largest Bitcoin miners, has completed a historic offering of $1 billion in 0% convertible senior notes due 2030. The transaction generated net proceeds of approximately $980 million.
The company said it will use the liquid proceeds primarily to purchase Bitcoin.
Marathon Digital holds over $2.5 billion in Bitcoin
Following its latest purchase in September, Marathon Digital’s Bitcoin reserves now total 25,945 BTC. This is currently worth around $2.52 billion, as Bitcoin hit an all-time high of $98,000 earlier today (21).
However, the company’s decision to expand its reserves potentially points to a larger bull cycle for the token in the long term. According to its press release, Marathon Digital plans to use $199 million of the net proceeds to repurchase existing convertible notes due in 2026.
The company will allocate the remainder to acquiring more Bitcoin and serving general corporate purposes. Marathon Digital currently ranks as the second-largest holder of Bitcoin among publicly traded companies.
Bitcoin reserves by public companies. Source: CoinGecko
The notes offer flexibility, with options for conversion into cash, Marathon common stock or a combination of both. Redemption terms include the ability of the company to redeem the notes for the full principal amount plus accrued interest.
US$1 billion. 0% interest. MARA has completed the largest convertible note offering ever among BTC miners. The mission, as always: provide value. Get #bitcoin, the company wrote on X (formerly Twitter).
Increased Bitcoin acquisition among public companies
Marathon Digital is following an ongoing trend of public companies increasing their Bitcoin holdings in this bull market. Earlier this week, MicroStrategy announced plans to issue $1.75 billion in convertible notes due 2029. The proceeds will be used to fund additional Bitcoin purchases.
On the same day, the company secured $4.6 billion worth of Bitcoin, adding to a $2 billion acquisition from the previous week.
Bitcoin’s all-time high and these aggressive purchases have driven MicroStrategy’s stock price up nearly 120% in a single month. The largest holder of Bitcoin has also made it onto the list of the 100 largest public companies in the US.
Meanwhile, Marathon Digital faced challenges despite its growing Bitcoin reserves. The company reported a net loss of $125 million in the third quarter. This was driven by a $92 million increase in operating costs compared to the previous year.
However, its operational capacity has strengthened. Earlier this month, its powered hash rate increased by 93%, signaling increased mining efficiency. Marathon Digital also signed an $80 million deal with the Kenyan government to expand its Bitcoin mining capabilities.
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