In its latest announcement, Marathon Digital revealed plans to issue $700 million in convertible senior notes, maturing in 2031, with the specific amount depending on market conditions and other factors. MARA also expects to grant the initial purchasers of the notes an option to purchase up to $105 million in aggregate principal amount of the notes within 13 days of the initial issuance of the notes.
The company noted that these notes will be unsecured senior debt of MARA, with no expected interest or accumulation. Special interest will be paid semi-annually on June 1 and December 1, starting from June 1, 2025. These notes will be offered and sold to qualified institutional buyers.
Notably, these notes will be convertible into cash, MARA common stock, or a combination of cash and MARA common stock (at MARA's discretion). MARA expects to use $50 million of the net proceeds from the note sale to repurchase some of its existing convertible notes due in 2026 through privately negotiated transactions, while the remainder will be used for general corporate purposes.
MARA's continuously increasing BTC adoption rate
Recently, Marathon acquired 6,474 Bitcoins (BTC) for over $600 million. This move coincides with a broader trend of institutional adoption of Bitcoin, as more publicly traded companies now hold BTC on their balance sheets.
MARA's latest purchase further solidifies its position among an increasing number of companies that are treating Bitcoin as a long-term asset.
Marathon Digital also shared its Bitcoin production update for November 2024. Notably, its powered hash rate increased by 15%, reaching 46.1 EH/s. Its total BTC HODL currently stands at 34,959 BTC, valued at $3.3 billion. Year to date, it has acquired 12,965 BTC at an average price of $77,692. It has achieved a 37.2% year-to-date BTC yield per share.
