Key Points:
Read more: Marathon Digital Quarterly Losses Soar With 20,000 BTC In Balance
The notes will only be due until 2031, and this forms part of the plan for the expansion of Marathon Digital Bitcoin investments.
According to press release, the offering would be made available to qualified institutional buyers in accordance with Rule 144A of the Securities Act of 1933. The notes will be unsecured, senior obligations, with semi-annual interest payable on March 1, 2025, and each succeeding March 1 and September 1 thereafter.
Investors have the option of cash, shares of common stock of Marathon, or a combination of both. In addition, initial purchases may purchase up to an additional $37.5 million in aggregate principal amount of the notes.
The notes may be redeemed on or after September 6, 2028, with a partial redemption condition: at least $75 million aggregate principal amount shall remain outstanding. Holders have the right to demand cash repurchase on March 1, 2029.
This follows Marathon’s acquisition of $100 million of Bitcoin in July, made with the intention to drastically increase its Bitcoin holdings to over 20,000 BTC.
The block rewards for Bitcoin have now dropped by 50%, based on the 2024 halving. However, Marathon Digital Bitcoin investments carry on. This deviates heavily from the likely sell-off behaviour that would be expected in the rest of the industry.
Corporate adoptions rise with the interest in Bitcoin as a reserve asset in spite of volatility and accounting headaches accompanying the rise of spot Bitcoin ETFs. While Marathon’s proactive strategy and acquisitions have been remarkable, Bitcoin’s price is still trading below $60,000 at the time of writing.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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