Popular United States-based Bitcoin mining company MARA (formally Marathon Digital Holdings) has announced plans to raise roughly $700 million from senior convertible notes at a 0% interest rate to purchase additional bitcoin (BTC).
The company noted that it aims to allocate the net proceeds to acquire additional bitcoin for general corporate purposes, including working capital, strategic acquisitions, expansion of existing assets, and repayment of additional debt and other outstanding obligations.
Up to $105 Million
The notes will be available to individuals reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act. The initial purchasers will also have the option to purchase up to an additional $105 million aggregate principal amount of the notes within 13 days, including the date on which the notes are first issued.
The announcement comes when the leading cryptocurrency has shown resilience, trading steadily above the $96,000-$97,000 range after recovering from an earlier market pullback. MARA’s move reflects growing institutional confidence in Bitcoin’s long-term potential.
Over the years, the mining firm has acquired BTC worth millions of dollars, further cementing its position as a key player in the crypto space. According to the announcement, between October 1, 2024, and November 30, 2024, MARA acquired roughly 6,484 bitcoins for approximately $618.3 million in cash at an average price of approximately $95,352 per bitcoin, inclusive of fees and expenses.
MARA Buying BTC
Recently, the miner noted that it acquired an additional 703 BTC after its prior acquisition of 5,771 BTC, with an average cost of $95,395 per BTC. Year-to-date, MARA’s Bitcoin holdings have delivered a per-share return of 36.7%, and the firm now maintains a reserve of about 34,797 BTC, estimated to be worth around $3.3 billion.
Despite being a Bitcoin miner, MARA has always purchased more BTC from the open market in addition to its mining rewards, adopting a complete Bitcoin hodl strategy. On November 23, 2024, the firm spent $572 million to acquire about 5,771 BTC at an average price of $95,554 per bitcoin.
