Crypto firm Marathon Digital announced plans to buy Bitcoin through offering $250 million of convertible senior notes to qualified institutional investors.
Marathon Digital has announced plans to offer $250 million aggregate amount worth of convertible senior notes. The company intends to use the new raise to fund more Bitcoin (BTC) acquisition plans and general corporate purposes. This year, firms continue to add Bitcoin to their balance sheet for several reasons.
Marathon Digital To Offer $250M Convertible Notes
Marathon Digital disclosed plans to offer $250 million $250 million in senior convertible notes based on market conditions. Qualified institutional buyers are eligible for the notes which becomes due in 2031. This will fund the company’s Bitcoin acquisition plans as multiple firms continue to purchase the asset amid increased demand this year.
“MARA intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes, which may include working capital, strategic acquisitions, expansion of existing assets, and repayment of debt and other outstanding obligations. The notes will be offered and sold to persons reasonably believed to be qualified institutional buyers under Rule 144A under the Securities Act.”
Marathon Digital will also include an offer for institutional investors to purchase an additional $37.5 million principal amount of notes in a 13-day period starting from when the notes were first issued. Furthermore, the notes will be unsecured senior obligations of the company with interests payable twice a year starting from March 1 2025 to September 1, 2031.
Companies Bitcoin Appetite Soar
Per the release, the company will utilize the newly raised capital to acquire Bitcoin amid increased demands from institutional investors. Following in the footsteps of Michael Saylor’s MicroStrategy, Marathon Digital will amass new assets to its balance sheet. Most companies have recorded gains from the strategy amid macroeconomic conditions and other factors.
The approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC) opened the channel to new investments. With billions poured into the market, the asset price and value as a haven continue to attract more firms as they increase exposure.
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