Marathon Digital Raises $950M via Bitcoin Purchase

Marathon Digital (MARA), formerly known as Marathon Digital, has successfully closed an upsized private offering to acquire Bitcoin, exceeding its initial target of $850 million to reach $950 million.

The Nasdaq-listed company secured the funds through a private sale of 0% convertible senior notes due in 2032, targeting institutional investors.

Currently holding 50,000 BTC valued at approximately $5.8 billion, Marathon Digital ranks as the second-largest corporate holder of Bitcoin behind Strategy S.A. (formerly MicroStrategy).

Following the announcement, Marathon Digital shares experienced a decline, trading nearly 1% lower on Monday, continuing a recent trend of reduced performance despite higher institutional interest in Bitcoin.

The company has committed to a "HODL" strategy, publicly stating it will never sell its accumulated Bitcoin holdings. The crypto mining firm aims to profit from Bitcoin’s price appreciation while minimizing losses from halving mining rewards and increasing operational challenges within the sector.

MARA is following similar strategic debt financing approaches adopted by other companies, including its rival Bitcoin miner, as they build substantial crypto treasury reserves to potentially boost stock valuations.

While many miners face increasing difficulties due to the Bitcoin reward halving, Marathon Digital leader is hopeful that the intense buying pressure will eventually drive up the cryptocurrency’s price, enhancing the company’s long-term value.