Marathon Buys Bitcoin with $249M from Convertible Notes

Marathon Digital, the largest public bitcoin mining firm by realized hashrate, has acquired 4,144 BTC using proceeds from a $300 million convertible senior notes offering, which closed on Tuesday.

In a release on Wednesday, Marathon stated that the offering involved 2.125% convertible senior notes due 2031, with an aggregate principal amount of $300 million, including $50 million from an option exercised by the initial purchasers.

After deducting the initial purchasers’ discounts and commissions, the net proceeds totaled approximately $292.5 million. Marathon used $249 million of these funds to acquire bitcoin at an average price of $59,500.

With this purchase, Marathon’s bitcoin holdings have surpassed 25,000 BTC, following its strategy of retaining the majority of its bitcoin production over the past few years.

Marathon recently announced a strategy pivot, returning to a full “HODL” mode, in which it will retain 100% of its monthly production and continue acquiring bitcoin from the market.

The $300 million convertible notes offering follows the firm’s year-to-date fundraising efforts, where it raised nearly $1 billion through at-the-market stock offerings.

Marathon’s bitcoin production was impacted by site issues at its hosting partner earlier this year, which has increased the estimated hashcost since Q1 although the site issues have been gradually resolved throughout Q2.