Marathon Digital Offers $250M Notes to Boost Bitcoin Holdings

• Marathon Digital’s $250 million convertible note offering will be used primarily to expand its Bitcoin holdings.
• TeraWulf’s Q2 Bitcoin production dropped 21% due to increased mining costs, despite exceeding revenue expectations.
• Bitdeer doubled its mining capacity in Q2 2024, boosting profits but still reporting a net loss of $17.7 million.

Marathon Digital Holdings is planning a $250 million convertible note offering to improve its Bitcoin treasury reserve. The private placement will be offered to qualified institutional buyers and may include an additional $37.5 million of notes depending on market conditions. 

The company noted that proceeds from the sale will be used mainly to buy more bitcoin and for general corporate purposes such as strategic acquisitions, expansion projects, and debt repayments. 

Marathon has consistently maintained a significant amount of bitcoin in its possession as part of its overall strategy to keep the flagship cryptocurrency as a reserve asset; by early August this year, Marathon had amassed 20,818 bitcoins with an estimated value of about $1.14 billion.

In Q2 2024 TeraWulf recorded a 21% drop in Bitcoin output

On a yearly comparison basis, TeraWulf produced 699 BTC in Q2 2024, representing a decline of 21% YoY (the previous year mined a total of 885 BTC). The decrease is due to higher mining costs which surged by 243% after the April halving event when network difficulty spiked substantially creating challenges for most miners across the board. 

Revenue was still better than expected at $35.6m. Still, earnings were worse than projected at -$0.03 per share in losses instead of profits indicating that there might have been some inefficiencies during this period even though they did mention their plans for HPC & AI expansion together with adding another 50 MW capacity into Lake Mariner data centre by end Q1 next year.

Bitdeer more than doubled capacity and profitability during Q2

The Bitdeer Technologies Group took advantage of higher revenues brought about by increased hashing power which rose from under half an exahash per second (EH/s) previously recorded up to approximately double that figure coming in at nearly seven and a half EH/s; this resulted in gross profit margins climbing significantly resulting in an all-time high quarterly figure of $24.4m gross profit (non-GAAP accounts).