Marathon Digital Holdings Upsizes Convertible Note Offering to $850M to Buy More Bitcoin

Crypto mining company Marathon has upsized its convertible note offering by $150 million to buy even more Bitcoin.

Bitcoin (BTC) mining company Marathon Digital (MARA) has announced plans to upsize its convertible note offering by $150 million to raise funds for further Bitcoin (BTC) acquisitions.

According to a press release on Tuesday, Marathon now aims to raise $850 million through the offering, up from the initial $700 million announced earlier on the same day. The 0.00% notes, set to mature on March 1, 2030, will be sold in a private offering to qualified institutional buyers. The offering is expected to close on Nov. 20, pending customary conditions.

As previously reported, holders of the notes will have the option to require MARA to repurchase the notes for cash starting Dec. 1, 2027, or in the event of certain corporate changes, the company added. Marathon also noted that it estimates net proceeds of $833 million from the sale of the notes.

Out of the total proceeds, Marathon plans to allocate approximately $199 million to repurchase its existing convertible notes due 2026. The remaining funds will be used for Bitcoin acquisitions, corporate growth, and debt repayment, the miner said.

Following the announcement, Marathon’s shares rose 2.4% in pre-market trading to reach $18.5, according to data from Nasdaq.

Related: Marathon Digital to Mine Bitcoin at Compute North Facility in Texas

The latest update comes a few hours after the Florida-headquartered company announced the $700 million private convertible note offering to fund debt repayment, Bitcoin purchases, and corporate needs.

As unveiled in the earlier announcement, upon conversion, each $1,000 principal amount of the notes will be exchangeable into shares of Marathon common stock at a fixed conversion rate. Holders will be able to convert the notes into cash, shares of Marathon stock, or a combination of both at their discretion.

According to data from Bitcoin Treasuries, Marathon currently holds around 25,945 BTC, valued at $2.3 billion at current prices.

The above is the detailed content of Marathon Digital Holdings Upsizes Convertible Note Offering to $850M to Buy More Bitcoin. For more information, please follow other related articles on the PHP Chinese website!