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.
CBW - External Analyst