United States based crypto mining company to raise $500 million in debt


On Monday one of
the largest publicly traded bitcoin miners, Marathon Digital (MARA) revealed it’s
planning to raise $500 million funds in debt through a convertible senior note
offering, which will mature on December 1, 2026.
As per the
company, after 13 days from the date the notes are first issued, the initial
purchasers will get an option to buy an additional $75 million principal amount
of notes. Nasdaq-listed company reveals that amount will be raised for a variety
of general corporate purposes including the purchase of Bitcoin and setting up
new Bitcoin miners. These unsecured notes will be offered to institutional
investors. At a later date, the pricing, interest, and conversion rates for these
notes will be determined. According to Marathon’s press release, the notes will
obtain interest semi-annually unless they are “repurchased, redeemed or
converted.
Marathon’s CEO
Fred Thiel said, “As in prior months, our bitcoin production was impacted by
maintenance-related outages at the power plant in Hardin, MT, and increases in
the total network hash rate,”. the Marathon executive added, “However, with
shipments of our previously purchased miners accelerating over the coming months,
we continue to expect our bitcoin production to become more consistent as we
scale,”.
Earlier funds
raise by Marathon and other companies:
Around a month
earlier, using USD and Bitcoin, Marathon obtained a $100 million revolving
line of credit with Silvergate Bank. Some of the publicly-listed North American
Bitcoin mining companies including Marathon, Riot, Bitfarms, Hut8, and Argo, instead
of liquidating the asset to bear corporate expenditure, have decided to hold”
almost all the Bitcoins they mined year-to-date.

Indrani bose
CBW - External Analyst
INDIA