Marathon Digital Holdings, one of the largest Bitcoin (BTC) mining companies in the United States, plans to borrow $ 500 million to buy Bitcoin and start new Bitcoin miners.
The Nasdaq-listed company officially announced a private debt offering of $ 500 million in its convertible senior notes on Monday. The company also expects to offer first-time buyers an option to purchase up to $ 75 million in Notes after 13 days from the date the Notes were first issued.
“The Notes are senior, unsecured debt of Marathon, accruing semi-annually retrospectively, and maturing on December 1, 2026, unless repurchased, redeemed or converted earlier,” the announcement reads.
According to the announcement, Marathon will use the raised capital for general corporate purposes such as acquiring Bitcoin or setting up new Bitcoin mining devices.
“This is not reflected in any model,” remarked MicroStrategy CEO Michael Saylor, referring to the newly announced offering.
A publicly traded #bitcoin miner @MarathonDH raises $ 500 million in a bond offer to purchase bitcoin and bitcoin mining machines. Nobody takes this into account. $ MARAhttps: //t.co/WauIvs4bJy
– Michael Saylor⚡️ (@saylor) November 15, 2021
Marathon stock has already reacted to the news, with MARA stock up more than 7% in the past 24 hours, trading at $ 75.9 at the time of writing, according to TradingView. As previously reported by Cointelegraph, MARA hit a six-year high in early November, with Marathon amassing $ 460 million worth of Bitcoin.
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Aside from huge hits in its own stock, Marathon has advanced a number of industry-related Bitcoin investment products, including exchange-traded funds (ETFs). As such, Marathon’s stock is part of many crypto ETPs that track industrial companies including Volt Equitys Crypto Industry Revolution and Tech ETF, Melanion Capitals BTC Equities Universe UCITS ETF, Cosmos Asset Managements Global Digital Miners Access ETF, and others.