Marathon Digital announced a convertible note offering maturing in 2031 to raise funds for investment.
Marathon Digital announced an offering of $250 million (R$ 1.3 billion, at the current exchange rate) in convertible notes, maturing in 2031, in a private offering aimed at "qualified institutional buyers." The purpose of the offering is to raise funds to acquire more units of bitcoin.
The company, which is the largest in the world in the bitcoin mining segment, is also considering an additional sale of $37.5 million in notes to initial buyers, depending on market conditions.
The company states that "it intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes, which may include working capital, strategic acquisitions, expansion of existing assets, and payment of debts and other outstanding obligations."
The buying patterns of large holders of the cryptocurrency and miners can have a significant impact on the asset's price due to the large amount of capital involved. Investors often use the buying decisions of large institutions to assess demand for the cryptocurrency.
Bet on bitcoin
Marathon increased its investments in bitcoin by $124 million during the month of July, reaching a total of 20,818 units of the asset, valued at over $1.14 billion as of August 6. The company intends to adopt a long-term storage strategy, projecting significant asset appreciation.
Fred Thiel, CEO of Marathon Digital, explained that the company's strategy is to
the company is fully focused on the long term, "to strengthen our strategy of holding bitcoin as our strategic reserve treasury asset." The announcement represents a continuation of the company's bet on the asset, even after the occurrence of the 2024 halving.
The halving, which occurs every four years, is marked by a halving of the rewards for cryptocurrency miners. Therefore, it traditionally results in adverse market conditions for the segment in the short term. The most recent halving occurred in April of this year.
