The largest publicly listed Bitcoin miner, Marathon Digital, announced the acquisition of a wind farm in Texas to achieve broader renewable energy deployment. The transaction is currently awaiting regulatory approval, expected to be completed in the first quarter of 2025. Additionally, Marathon Digital has recently issued convertible bonds to repay old debts and further purchase Bitcoin.
Marathon Digital acquires a wind farm
MARA will develop and operate a user data center powered by 114 megawatts of wind energy capacity, with zero energy costs. By operating the data center at this location, MARA hopes to alleviate grid congestion and promote renewable energy development.
MARA Chairman and CEO Fred Thiel stated:
This acquisition creates long-term value for the energy and data center industries while laying out a blueprint for sustainable development plans.
The site will utilize ASIC mining hardware that was supposed to be scrapped or sold to the secondary market, powering them through reuse and 100% renewable, zero marginal energy costs, thereby lowering Bitcoin production costs through vertical integration. However, the transaction is still pending regulatory approval, expected to be completed in the first quarter of 2025.
Marathon Digital reissues 0% convertible bonds
Marathon Digital announced at the end of July that it will adopt a comprehensive HODL strategy, retaining all Bitcoin mined by itself and starting to emulate MicroStrategy's approach by using company funds and issuing convertible bonds to purchase additional Bitcoin.
August 2024: Issued convertible senior notes totaling $300 million, with an interest rate of 2.125%, maturing in 2031
November 2025: Issued convertible senior notes totaling $1 billion, with an interest rate of 0%, maturing in 2030
December 2025: Issued convertible senior notes totaling $850 million, with an interest rate of 0%, maturing in 2031
In the last two convertible bond issuances, in addition to prioritizing Bitcoin purchases, a portion of the funds was allocated to redeem earlier issued 2026 convertible bonds (with an interest rate of 1%), aimed at reducing the company's interest costs.
Mining company Marathon Digital is the second-largest publicly listed company holding Bitcoin, currently owning 34,794 Bitcoins, second only to MicroStrategy.
This article discusses Marathon Digital's acquisition of a wind farm and the issuance of zero-interest convertible bonds to purchase Bitcoin, first appearing in Chain News ABMedia.
