Marathon Digital Invests $249 Million in 4,144 Bitcoins

Marathon Digital Invests 4,144 Bitcoins with $249 Million, Expands Holdings with New Convertible Notes

Marathon Digital Invests– Bitcoin miner Marathon Digital (NASDAQ: MARA) has announced a significant purchase of 4,144 Bitcoins, investing $249 million in the process. This acquisition occurred within just two days following the oversubscription of their convertible notes earlier this week.

The convertible notes issued amounted to $300 million, which included an additional $50 million in notes bought by initial investors with an option to purchase more within 13 days from the initial issuance date. Marathon fully exercised this option on August 13 and completed the Bitcoin purchase on August 14. According to the company’s press release, Marathon acquired 4,144 Bitcoins between August 12 and August 14, 2024, at an average price of $59,500 per Bitcoin. The convertible notes are unsecured, senior obligations with a 2.125% annual interest rate, payable semi-annually starting March 1, 2025, and maturing on September 1, 2031. The company stated:

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.

This isn’t Marathon Digital’s first significant BTC acquisition. In 2021, the company invested $150 million in Bitcoins, which are still on their balance sheet. Earlier this year, Marathon bought an additional $100 million worth of BTC from the open market, making it the second-largest corporate holder of Bitcoin, following MicroStrategy. Overall, Marathon Digital now holds a total of 25,000 Bitcoins on its balance sheet.

Despite recent pressures on Bitcoin prices, which have fallen by 4.35% to $58,447.00 amid cooling U.S. CPI inflation, market analysts anticipate that the Bitcoin price rally might continue, particularly with expected Federal Reserve rate cuts in September. However, Marathon’s stock also experienced a 2.26% drop, closing at $15.14 on Wednesday.

Bitcoin Miner Eyes New Market Opportunities

Marathon Digital is focusing on new market opportunities with its latest BTC purchase, aiming to strengthen its balance sheet through debt reduction. The company has taken steps toward this goal by acquiring three major Bitcoin mining sites in Nebraska and Texas last year, and securing 690 operational megawatts (MWs) before this year’s Bitcoin halving event.