Marathon digital acquisition followed a successful $300 million convertible note offering, which was oversubscribed.
Using a total of $249 million in cash, the Bitcoin miner Marathon Digital (NASDAQ: MARA) has disclosed that it has acquired a total of 4,144 bitcoins. After the convertible notes were oversubscribed earlier this week, the purchase of Bitcoin took place about two days later.
Marathon Digital’s $300 Million Convertible Notes
The first buyers purchased an additional fifty million dollars’ worth of notes under an option within thirteen days of the first issuance date, increasing the total value of the notes issued in the offering to three hundred million dollars.
Marathon fully exercised the option on August 13 and finalized the purchase on the same day. Marathon Digital made a purchase of 4,144 bitcoins between August 12, 2024 and August 14, 2024, at an average price of $59,500 per bitcoin, as stated in the company’s press statement.
The Bitcoin miner stated that its convertible notes, worth $300 million are unsecured senior obligations with an interest rate of 2.125% per year.
Additionally, the miner has stated that the semi-annual arrears are due on March 1, 2025, that are payable. The convertible notes will reach their maturity date on September 1st, 2031.
“Our new initiative with the convertible notes issuance positions us to take advantage of favorable market conditions and enhance our operational capabilities, aligning with our long-term financial goals and reinforcing our belief in Bitcoin’s potential as a highly accretive asset”.
The Bitcoin miner made the following statement in an official announcement: “This is not the first time that Marathon has been making strategic acquisitions of digital currency.”
The corporation’s balance sheet still reflects the full $150 million that MARA invested in Bitcoins in 2021. In addition, they just purchased one hundred million dollars worth of Bitcoin from the open market, which places them in the position of being the second-largest corporate holder of Bitcoin after MicroStratonomics.
Upon combining all mined Bitcoins, Marathon Digital’s balance sheet displays a total of 25,000 units of Bitcoin. As a result of the decrease in the Consumer Price Index (CPI) in the United States, the price of Bitcoin has been subject to selling pressure.
Bitcoin (BTC) is currently trading at $58,447.00, a decrease of 4.35% from its previous day’s price, and has a market worth of $1.153 trillion. On the other hand, market analysts predict that the price boom of Bitcoin will persist once the Federal Reserve reduces interest rates in September.
However, as of Wednesday’s closing hours, the price of MARA shares had also decreased by 2.26%, reaching $15.14. MARA, a Bitcoin Miner stated that the company is currently preparing to purchase Bitcoins in order to take advantage of fresh market opportunities, while simultaneously planning to reduce its debt in order to strengthen its balance sheet.
In addition to obtaining 690 operational megawatts (MWs) before this year’s Bitcoin halving, the company stated that the acquisition of three important Bitcoin mining sites during the past year in the states of Nebraska and Texas was a step in this direction.
Bitcoin Miner Eyes New Market Opportunities
As a result of this acquisition, MARA was able to increase the proportion of Bitcoin mining operations that it directly owned and operated from three percent to forty-five percent, in addition to lowering the operational costs at these sites by twenty percent.
Our new initiative with the convertible note issuance positions us to take advantage of favorable market conditions and enhance our operational capabilities, aligning with our long-term financial goals and reinforcing our belief in Bitcoin’s potential as a highly accretive asset,” said the Bitcoin Miner.
