Marathon Digital Holdings is one of the most prominent Bitcoin (BTC), mining companies in America. It seeks to raise $500 million debt to purchase Bitcoin and to set up new Bitcoin miners.
Officially, the Nasdaq-listed company announced Monday that it will be offering a private debt financing with a total principal amount of $500 million in convertible senior notes. After 13 days, the company expects to offer the option to additional purchasers of up to $75 million principal amount of its convertible senior notes.
The announcement notes state that the notes will be senior, unsecure obligations of Marathon and will pay interest semi-annually in arrears. They will mature Dec. 1, 2026 unless repurchased or redeemed earlier.
Marathon, according to the announcement will use the capital raised for general corporate purposes such as the acquisition of Bitcoin and the setting up of new Bitcoin mining devices.
MicroStrategy CEO Michael Saylor stated that this offering is not part of any model.
@MarathonDH, a publicly traded #Bitcoin miner, is raising $500 million to finance a debt offering in order to acquire bitcoin and other bitcoin mining machines. This is not included in any model. $MARAhttps://t.co/WauIvs4bJy
— Michael Saylor (@saylor), November 15, 2021
Marathon stock already responded to the news. MARA shares jumped more than 7% in the past 24 hours, and traded at $75.9 at time of writing according to TradingView data. Cointelegraph previously reported that MARA hit a six year high in November. Marathon also accumulated $460 million of Bitcoin.
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Marathon is not only a major investor in its stock but also has been driving many of the Bitcoin-related investment products (ETFs). Marathon’s stock is included in many crypto exchange-traded funds (ETPs) that track companies such as Volt Equity’s Crypto Industry Revolution & Tech ETF, Melanion Capital’s BTC Equities Universe ETF, Cosmos asset Management’s Global Digital Miners Access ETF, and others.