Marathon Digital Holdings Announces $250 Million Convertible Notes Offering

Marathon Digital Holdings has announced its intention to offer $250 million worth of convertible senior notes in a private offering to qualified institutional buyers.

The company plans to use the net proceeds from the sale to acquire additional bitcoin and for general corporate purposes.

The offering is subject to market and other conditions, meaning that, despite the intention, it is not guaranteed to be completed as planned.

The notes will be unsecured, senior obligations that bear interest payable semi-annually in arrears on the first days of March and September each year, beginning next year.

The notes will mature on September 1, 2031, unless repurchased earlier.

Marathon Digital’s intention to offer the convertible notes comes after it reported a net loss of $199.7 million in Q2 2024 — significantly more than the $9 million loss reported in the same quarter last year.

Late last month, Marathon Digital announced it had purchased an additional $100 million worth of bitcoin, bringing its balance sheet to more than 20,000 bitcoin.