Marathon Digital Holdings, one of the largest publicly traded bitcoin mining companies in the United States, announced plans to raise $250 million through a private offering of senior convertible notes. The funds will primarily be used to expand Marathon’s bitcoin holdings.
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BREAKING NEWS: MARATHON DIGITAL HOLDINGS TO RAISE $250 MILLION TO BUY MORE twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin image.twitter.com/6NKbfyDPvh
— bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1822959251272106450?ref_src=twsrc%5Etfw”>August 12, 2024
The Nevada-based company operates a fleet of miners that produced around 579 bitcoins in July. Marathon's balance sheet contains more than 20,000 bitcoins worth more than $1.1 billion.
In early July, Marathon purchased $100 million worth of bitcoins on the open market as part of its long-term “conservation” strategy. The company said it will hold all newly mined bitcoins as reserves.
This last move MicroStrategy’s strategy to raise capital for direct bitcoin purchases mirrors the strategy pioneered by MicroStrategy. Since 2020, MicroStrategy has issued debt and sold equity to accumulate over 220,000 bitcoin in corporate treasury.
Marathon aims to position itself at the top of the nascent but rapidly evolving bitcoin mining and services industry by aggressively expanding its bitcoin stack.
This method of fundraising allows public equity investors indirect exposure to bitcoin. With growing adoption by companies such as Microstrategy, Semler Scientific, and Metaplanet, bitcoin is emerging as a corporate treasury asset class.
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