Marathon Digital's Bold Strategy
Marathon Digital, a prominent Bitcoin miner, is set to sell $250 million of convertible notes in a private placement aimed at bolstering its Bitcoin purchases and supporting corporate operations.
Current Holdings
The company currently boasts a staggering 20,800 BTC, valued at approximately $1.2 billion, significantly outpacing its closest competitor, Hut 8.
Details of the Offering
- The notes will yield interest payments every six months.
- They are scheduled to mature on September 1, 2031.
- The specific interest and conversion rates will be determined during the pricing phase.
Recent Developments
Marathon previously sold 51% of the Bitcoin it mined in Q2 to cover operational costs but has pivoted back to a strategy focused on retaining all mined BTC. Recently, it made headlines by purchasing $100 million worth of Bitcoin on the open market.
Market Reaction
Despite these ambitious plans, Marathon's shares experienced a 3.2% decline in pre-market trading, reflecting cautious sentiment among investors.
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