Marathon Digital Holdings Bolsters Bitcoin Reserves with $249 Million Purchase Amid Market Dip
Marathon Digital Holdings (MARA) has announced the acquisition of $249 million worth of Bitcoin following a successful $300 million fundraising through a senior note offering. This purchase comes at a time when Bitcoin’s price has declined by more than 8% over the past 30 days.
MARA revealed that it acquired 4,144 Bitcoin at an average price of $59,500, boosting its strategic reserves to over 25,000 Bitcoin. However, the cryptocurrency’s value has since dropped to around $58,000 amidst significant market sell-offs.
Marathon Digital Completes $300 Million Bond Offering
Marathon Digital recently concluded its $300 million offering in 2.125% convertible senior notes due in 2031, which included a full $50 million over-allotment option. The notes were sold in a private offering to institutional investors under Rule 144A. The company raised approximately $292.5 million in net proceeds from the sale, which it used to purchase $249 million worth of Bitcoin, further solidifying its position in the digital assets space.
Marathon Digital continues to invest in both Bitcoin and the infrastructure that supports its operations, using the funds to acquire more Bitcoin and for general corporate purposes. These include strategic acquisitions and debt repayment.
Bitcoin Mining and Financial Flexibility
The 2.125% convertible senior notes due in 2031 represent high-quality, unsecured obligations for MARA. The company noted that starting in September 2028, it may redeem the notes for cash if certain stock price conditions are met, providing flexibility in managing its debt while potentially capitalizing on rising stock prices.
MARA’s stock has seen a prolonged decline, with a 38% drop over the past month, closing at an average price of $15.14 on August 14, 2024.
Bitcoin Drops 4%
Bitcoin’s price has fallen by over 4% in the last 24 hours, with 24-hour trading volume increasing by 9% to reach $32 billion. As of this writing, BTC is trading at an average price of $58,070. Despite the recent dip, the largest cryptocurrency remains up by 31% year-to-date.
Read more Professional Title: Navigating the Volatile Waters of BTC and ETH Options Expiration
The overall cryptocurrency market capitalization has decreased by more than 3% in the last day as major crypto assets printed red indicators. Ethereum (ETH) and Solana (SOL) prices dropped by 4% and 3%, respectively.
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