One of the largest Bitcoin mining companies in the United States – Marathon Digital – plans to raise $ 500 million through the issuance of senior convertible notes. The company wants to use the proceeds to buy bitcoin and BTC mining machines.
- Founded over ten years ago, Marathon Digital Holdings is one of the largest publicly traded BTC mining companies.
- The company’s announcement earlier on November 15 described its intention to “offer, subject to market and other conditions, an aggregate principal amount of $ 500,000,000 of convertible senior notes due in 2026 “.
- The company’s offer will be a private offer to qualified institutional buyers under Rule 144A of the Securities Act of 1933. If certain conditions are met, the total amount raised could increase by an additional $ 75 million.
“Marathon also plans to give initial purchasers of the tickets an option, for settlement within 13 days of the date of the initial ticket issuance, to purchase up to $ 75,000,000 in principal in tickets.”
- These notes will be unsecured obligations of the Company and will accumulate interest payable twice a year, and will mature on December 1, 2026, unless redeemed, redeemed or converted earlier.
- The company plans to use the net proceeds for “general business purposes, including the acquisition of bitcoin or bitcoin mining machines.”
- It should be noted that Marathon will not be the first large publicly traded company to go into debt to buy bitcoin.
- NASDAQ-listed giant Michael Saylor – MicroStrategy – has done the same a few times, ultimately raising over $ 1 billion to buy BTC.
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