Marathon Digital’s expanded offering suggests that it intends to augment its treasury holdings, which is indicative of its adaptability in Bitcoin acquisition strategy.
According to a Nov. 18 statement, Marathon Digital, a Bitcoin mining company that is listed on the Nasdaq, intends to raise its debt offering to $1 billion, with a maturity date of 2030.
Marathon clarified that the zero-interest senior notes would be privately sold to qualified institutional purchasers in accordance with Rule 144A of the Securities Act of 1933. The company’s initial objective was to raise $700 million; however, investor demand necessitated an increase in the offering to $980 million.
MARA anticipates that the net proceeds from the issuance of the notes will be around $833 million (or $980 million if the initial purchasers exercise their option to purchase additional notes in full).
Unless redeemed, converted, or repurchased prior to March 1, 2030, the unsecured senior notes will mature without regular interest. The company’s treasury will receive a portion of the funds to purchase additional Bitcoin.
According to Marathon, the conversion rate for these new notes is 38.5902 shares of MARA stock per $1,000 principal, which translates to an initial conversion price of approximately $25.91 per share. This represents a 42.5% increase in value from the volume-weighted average stock price of $18.18 for MARA.
Salman Khan, Marathon’s Chief Financial Officer, observed that this is the highest premium for a zero-coupon offering since 2021.
In the interim, market analysts hypothesized that Marathon’s decision is indicative of its capacity to directly mine or acquire Bitcoin, contingent upon cost efficiency.
Marathon anticipates a net profit of approximately $833 million from the offering, which could rise to $980 million if purchasers exercise their options for additional notes in full. The remaining proceeds will be used to finance Bitcoin acquisitions, corporate expansion, strategic investments, and debt repayment, in addition to repurchasing the 2026 convertible notes.
Marathon currently possesses 27,562 BTC, which is equal to approximately $2.5 billion, as per Bitcoin Treasuries data. This places it as the second-largest public corporation in terms of Bitcoin holdings, trailing only Michael Saylor’s MicroStrategy, which has over 331,000 BTC and a value of over $30 billion.
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