Marathon Digital Holdings, Inc. has completed a $300 million offering of 2.125% convertible senior notes due 2031. The net proceeds from the sale of the notes were approximately $292.5 million after deducting the initial purchasers’ discounts and commissions. Additionally, between August 12, 2024, and August 14, 2024, the company acquired approximately 4,144 bitcoin for approximately $249 million in cash, using proceeds from the sale of the notes, at an average price of approximately $59,500 per bitcoin, inclusive of fees and expenses.
The notes are unsecured, senior obligations of Mara and bear interest at a rate of 2.125% per annum, payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2025. The notes will mature on September 1, 2031, unless earlier repurchased, redeemed, or converted in accordance with their terms.
The conversion rate for the notes is initially 52.9451 shares of Mara’s common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $18.89 per share. The conversion rate is subject to adjustment upon the occurrence of certain events. Mara intends to use the remaining net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes, which may include working capital, strategic acquisitions, expansion of existing assets, and repayment of debt and other outstanding obligations.
The press release did not provide comparative figures for the previous period, so it is not possible to determine how these metrics have changed since the last period. Following these announcements, the company's shares moved -2.3%, and are now trading at a price of $15.14. If you want to know more, read the company's complete 8-K report here.
