Marathon Digital Holdings, one of the largest publicly traded bitcoin mining companies in the United States, has announced plans to raise $250 million through a private offering of convertible senior notes. The funds will be used primarily to expand Marathon’s bitcoin holdings.
BREAKING: 🇺🇸 MARATHON DIGITAL HOLDINGS RAISES $250M TO BUY MORE #Bitcoin pic.twitter.com/6NKbfyDPvh
— Bitcoin Magazine (@BitcoinMagazine) August 12, 2024
The Nevada-based company operates a fleet of mining machines, producing about 579 bitcoins in July. Marathon’s balance sheet contains more than 20,000 bitcoins worth more than $1.1 billion.
Earlier in July, Marathon bought $100 million worth of bitcoin on the open market as part of its long-term strategy to hold the currency. The company said it would keep all newly mined bitcoin as reserves.
this Latest move Raising capital to buy bitcoin directly reflects a strategy pioneered by MicroStrategy. Since 2020, MicroStrategy has issued debt and sold equity to accumulate more than 220,000 bitcoins in the company’s treasury.
Marathon aims to position itself at the top of the emerging but rapidly evolving Bitcoin mining and services industry by significantly expanding its Bitcoin pool.
This approach to fundraising gives public equity investors indirect exposure to bitcoin. With growing adoption by companies like Microstrategy, Semler Scientific, and Metaplanet, bitcoin is emerging as a treasury asset class for companies.