Convertible Notes to Bolster Bitcoin Holdings
Bitcoin mining firm Marathon Digital Holdings (MARA) announced plans to issue $850 million in convertible notes, with an option to expand to $1 billion. Proceeds will be used to repurchase $212 million in existing debt, acquire Bitcoin, and support corporate initiatives as crypto markets rally.Strategic Financial Moves
Marathon intends to allocate $199 million of the net proceeds for debt repayment, while the remainder will go toward Bitcoin acquisitions, working capital, and expansion. Convertible notes enable investors to convert their holdings into equity shares, aligning with Marathon’s strategy to strengthen its balance sheet while capitalizing on Bitcoin’s surge to $94,000.Broader Context in the Crypto Market
Marathon joins companies like MicroStrategy and Metaplanet in increasing Bitcoin holdings. This trend reflects growing confidence in Bitcoin as a treasury asset. Marathon’s stock rose 9% following the announcement, signaling market optimism around its strategic use of funds to position itself for growth in a rising crypto market.
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