Marathon Digital Holdings, one of the largest mining companies in Bitcoin (BTC) from United States, is trying to raise $ 500 million in debt to buy Bitcoin and establish new BTC miners.
The company, which is listed on the Nasdaq, officially announced on Monday a private debt offering with an aggregate principal amount of $ 500 million from its senior convertible bonds. The company also expects to grant initial purchasers an option to purchase up to an additional $ 75 million in principal on the notes after 13 days from the date the notes were first issued.
“The notes will be Marathon’s senior unsecured obligations, will accrue semiannual interest and will mature on December 1, 2026, unless they are previously repurchased, redeemed or converted”, points to the ad.
According to the announcement, Marathon will use the capital raised for general corporate purposes such as the acquisition of Bitcoin or the creation of new mining devices for the cryptocurrency.
“This is not contemplated in anyone’s model”, noted the CEO of MicroStrategy, Michael Saylor, in reference to the offer just announced.
A publicly traded #Bitcoin miner @MarathonDH is raising $ 500 million in a debt offering to acquire bitcoin and bitcoin mining machines. This is not factored into anyone’s model. $ MARAhttps://t.co/WauIvs4bJy
– Michael Saylor⚡️ (@saylor) November 15, 2021
A publicly traded Bitcoin mining company, Marathon Digital Holdings, is raising $ 500 million in a debt offering to acquire bitcoins and mining equipment. This is not contemplated in anyone’s model.
Marathon shares have already reacted to the news, with MARA shares rising more than 7% in the past 24 hours and trading at $ 75.9 at time of writing, according to data from TradingView. As previously reported by Cointelegraph, MARA hit a six-year high in early November, accumulating $ 460 million in Bitcoin.
Aside from being very successful in its own stocks, Marathon has powered a number of investment products tied to the Bitcoin industry, including exchange-traded funds (ETFs). Thus, Marathon shares are part of many cryptocurrency ETPs that follow companies in the sector, such as the Crypto Industry Revolution and Tech ETF of Volt Equity, the BTC Equities Universe UCITS ETF of Melanion Capital, the Global Digital Miners Access ETF of Cosmos Asset Management and others.
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