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Marathon Digital Holdings has announced plans to issue $850 million in convertible notes, with the possibility of expanding the offering to $1 billion, in an effort to acquire more Bitcoin.
The Bitcoin mining giant intends to allocate $199 million of the expected $833 million in net proceeds to repurchase $212 million worth of its existing 2026 convertible notes.
The remaining funds will be directed to acquiring more Bitcoin and corporate purposes such as working capital, strategic acquisitions, asset expansion, and repayment of other debt.
MicroStrategy, which recently added another 51,780 BTC to its Bitcoin stash, is known to use debt offerings to acquire the cryptocurrency too. Its stash now totals 331,200 BTC, worth just under $30 billion, with a purchase price of about $16.5 billion. The firm recently announced plans to raise $1.75 billion through convertible notes to fund Bitcoin acquisitions.
Blockhead
In response to Marathon's plans, its stock price jumped over 9.6% yesterday. Holders of Marathon’s convertible notes will have the option to ask for cash repayment starting 1 December 2027. The notes, which mature in 2030, offer investors the flexibility to convert them into cash, MARA stock, or a combination of both.
