Just a few weeks after purchasing over 1400 BTC worth $100 million, Bitcoin mining firm Marathon Digital Holdings has announced its plan to privately offer $250 million of convertible senior notes to “qualified institutional buyers.” The company noted that the fund will be used to purchase more BTC and for general corporate purposes, including working capital and expansion of existing assets.
Marathon clarified in the official statement, that it may use the over-allotment option as it plans to sell additional notes to the initial buyers. The qualified buyers may be able to buy up to a maximum of $37.5 million collectively within 13 days of the initial sale.
The firm noted that the convertible notes will yield interest for its buyers; however, the interest will only be payable semi-annually – March 01 and September 01 of each year. The periodic payment will commence on March 01, 2025. While the notes are eligible for conversion starting September 6, 2028, they will mature on September 01, 2031.
When due, the note purchasers will have the option of converting it into Marathon’s common stock, potentially benefiting from any future stock price appreciation. However, before the due date, private sale participants can also require the firm to repurchase their notes for cash under certain circumstances not clearly stated by MARA.
Marathon is the world’s largest Bitcoin mining firm based in Florida, USA. The firm’s stock is listed on the NASDAQ stock exchange with the ticker symbol “MARA.” It is worth noting that the firm already has over 20,800 BTC in its portfolio according to data from Bitcoin Treasuries.
The crypto community usually pays attention to the buying patterns of large Bitcoin holders such as miners and institutional investors. Due to the high volume of capital involved, such buys can significantly influence the Bitcoin price.
The involvement of more Institutional investors in Bitcoin excites the majority of crypto users as it is evidence of increased adoption and credibility. Such investors tend to have a long-term perspective, which can support Bitcoin’s growth.
