Marathon Digital Holdings announced that it has issued US$250 million of senior convertible notes due 2031 in a private placement to
"qualified institutional investors
.
Marathon, the world's largest #bitcoin (BTC) #mining company, is also considering selling US$37.5 million in bonds to the first purchaser, subject to market conditions.
According to the August 12 announcement, Marathon intends to use the $250 million in proceeds from the bond sale to acquire additional bitcoins and for general corporate purposes, including working capital, strategic acquisitions, expansion of existing assets and repayment of debt and other outstanding obligations.
The buying patterns of large bitcoin holders, such as #MarketDownturn miners, can have a significant impact on the bitcoin price due to the large amount of capital involved. Investors often use large entity buying schemes to gauge bitcoin demand.
In July, Marathon increased its bitcoin holdings by $124 million, reaching a total of 20,818 BTC, or more than $1.14 billion, as of Aug. 6.
In a July 25 post on X, Fred Thiel, CEO and chairman of Marathon Digital, said the company plans to go full HODL:
"Today, Marathon announces full HODL, having acquired $100 million worth of BTC over the past month to strengthen its strategy of holding bitcoin as a strategic treasury reserve asset
.
According to Cointelegraph, Marathon acquired $100 million worth of bitcoin in July to make BTC a strategic treasury reserve asset.
Marathon's bitcoin strategy is positive, given that the world's largest bitcoin #miner has not capitulated despite a 50 percent cut in its block reward as the bitcoin rate is set to be halved in 2024.
Despite the bullish statements and constant marathon buying, bitcoin remains below the psychological $60,000 mark. Bitcoin has fallen more than 1.2 percent in the past 24 hours and is trading at $ 59,908 as of 11:52 a. m. EDT.
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