Marathon Digital plans to raise up to $1 billion through convertible notes to acquire Bitcoin and fund corporate needs, including repurchasing existing debt.
Marathon Digital Bitcoin Purchase
Marathon Digital Holdings has disclosed its intention to issue $850 million in convertible notes, with the potential to increase the offering to $1 billion, in order to acquire additional Bitcoin.
In an effort to repurchase $212 million of its existing 2026 convertible notes, the Bitcoin mining colossus plans to allocate $199 million of the anticipated $833 million in net proceeds.
The remaining funds will be allocated to corporate purposes, including asset expansion, strategic acquisitions, working capital, and debt repayment, as well as the acquisition of additional Bitcoin.
It is also known that MicroStrategy utilizes debt offerings to acquire the cryptocurrency, as evidenced by the recent addition of 51,780 BTC to its Bitcoin cache. Its current holdings amount to 331,200 BTC, which is valued at approximately $16.5 billion and is equivalent to just under $30 billion. The company has recently disclosed its intention to raise $1.75 billion through convertible notes in order to finance Bitcoin acquisitions.
Marathon’s stock price increased by more than 9.6% yesterday as a result of its plans. Beginning December 1, 2027, holders of Marathon’s convertible notes will have the opportunity to request cash repayment. Investors have the option to convert the notes into cash, MARA stock, or a combination of both, as they are set to mature in 2030.
