Marathon Digital Holdings, one of many largest publicly traded Bitcoin miners in the USA, introduced plans to boost $250 million by way of a personal placement of convertible senior notes. The funds will primarily be used to increase Marathon’s Bitcoin holdings.
BREAKING NEWS: 🇺🇸 MARATHON DIGITAL HOLDINGS TO RAISE $250M TO BUY MORE PRODUCTS #bitcoin pic.twitter.com/6NKbfyDPvh
— Bitcoin Journal (@BitcoinMagazine) August 12, 2024
The Nevada-based firm operates a fleet of mining machines and produced roughly 579 Bitcoins in July. Marathon’s stability sheet accommodates greater than 20,000 Bitcoins value greater than $1.1 billion.
In early July, Marathon bought $100 million value of Bitcoin on the open market as a part of its long-term “hodl” technique. The corporate mentioned it should maintain all newly mined Bitcoin as reserves.
This newest transfer to boost funds for direct Bitcoin purchases displays a method pioneered by MicroStrategy. Since 2020, MicroStrategy has issued bonds and bought inventory, accumulating greater than 220,000 Bitcoins within the firm’s treasury.
Marathon goals to place itself as a frontrunner within the rising however quickly rising Bitcoin mining and providers trade by aggressively increasing its Bitcoin stack.
This fundraising methodology provides public fairness buyers oblique publicity to Bitcoin. Bitcoin is changing into a company finance asset class as firms like Microstrategy, Semler Scientific, and Metaplanet more and more undertake it.
