Key Points
- Marathon Digital Holdings plans to offer $250 million in convertible note offerings to purchase more Bitcoins.
- The Bitcoin miner will mark all Bitcoin blocks mined in America with the “Made in USA” label.
Marathon Digital Holdings, a Bitcoin miner, announced its intention to offer $250 million in convertible note offerings. The proceeds will be used to purchase additional Bitcoins. The announcement sparked significant institutional interest, leading to the oversubscription of the company’s convertible notes.
Details about the Convertible Notes
Marathon Digital later revealed more details about the convertible notes. The company intends to offer these notes to qualified institutional buyers with an aggregate principal amount of 2.125% and a maturity date set for 2031.
The convertible notes will be unsecured, senior obligations of Marathon Digital, and will bear an interest rate of 2.125% per annum. The conversion rate has been set at 52.9451 MARA shares common stock offering against a $1,000 principal amount of notes, equivalent to an initial conversion price of approximately $18.89 per share.
Marathon Digital stated that the notes would be convertible into cash, shares of MARA’s common stock, or a combination of cash and shares of MARA’s common stock, at Marathon’s discretion. The notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date.
The net proceeds from the sales will be used to buy more Bitcoin and for other general purposes such as working capital, expansion of existing assets, repayment of debt and other outstanding obligations, as well as strategic acquisitions.
Marathon Digital’s “Made in USA” Bitcoins
Bitcoin Magazine reported that Marathon Digital would imprint all Bitcoin blocks mined in America with the “Made in USA” label. Fred Thiel, CEO of Marathon Digital, confirmed this commitment.
This move aligns with former US President Donald Trump’s commitment to ensure that every subsequent BTC will be mined in the USA should he become the next US President. He also expressed significant support for the Bitcoin mining industry and believes that it would contribute towards America’s goal of becoming energy-dominant.
Despite these developments, Marathon Digital’s stock faced significant selling pressure, dropping 11% on Monday. As the company navigates the financial challenges of the Bitcoin halving event, the stock price continues to face pressure.
