Bitcoin Miner Marathon Digital Raises $850M to Acquire More BTC
Marathon Digital Holdings (MARA), the largest Bitcoin miner by market capitalization, announced via SEC filing plans to raise $850 million to purchase additional Bitcoin, driving its stock down over 10% in intraday trading.
Financing Details
MARA will sell 0% senior convertible notes due 2032 through a private placement target of $850 million to institutional investors.
Market Reaction
At press time, MARA stock (MARA) fell more than 10% following the announcement. Despite the sharp drop, the stock remains up over 25% year-to-date. Concurrently, Bitcoin traded slightly lower, around $117,782.
Balancesheet Context
MARA boasts the second-largest corporate Bitcoin holding (50,000 BTC valued at approximately $5.9 billion) behind software company Strategy.
Mining Strategy & Cryptocurrency Dynamics
Eligible Bitcoin is produced by miners when processing transactions. Unlike many competitors who sell proceeds to cover operational costs, MARA has adopted a “HODL” (Hold On for Dear Life) strategy, claiming it will not sell newly mined coins, stating the intention to retain positions as long-term treasury holdings.
Industry Trend
Several companies, including MARA which itself is an exchange-traded company, are strategically raising capital specifically for the purpose of acquiring Bitcoin via private placements, betting on the asset’s long-term growth potential for shareholder returns.
