- Marathon Digital Holdings spent $249 million to acquire 4,144 BTC as Bitcoin’s price dipped below $60k.
- The funds for the Bitcoin purchase were raised through a $300 million convertible notes offering by Marathon Digital.
- Marathon Digital now holds 25,000 BTC, making it the second-largest corporate Bitcoin holder after MicroStrategy.
Marathon Digital Holdings, a prominent player in the Bitcoin mining industry, has significantly increased its Bitcoin reserves, purchasing an additional 4,144 BTC. The acquisition, totaling $249 million, was funded through the proceeds of a $300 million convertible notes offering. This strategic move coincides with a recent dip in Bitcoin’s market value, which fell by nearly 4% over the last 24 hours, bringing the cryptocurrency below the $60,000 mark to trade at $58,121.
Strategic Investment and Market Timing
The purchase was announced by the firm in Florida on August 14, reiterating that the mean price of acquisition per Bitcoin was $59,500. Marathon Digital’s decision to expand their investment despite the bearishness in BTC prices is another sign of its effort to consolidate its position in the crypto sector. Marathon Digital now holds 25k Bitcoin which is worth about $1.45 billion at current price levels making it the second biggest public holder of this coin after MicroStrategy Inc.
Convertible Notes Offering Fuels Acquisition
The financing for this transaction came from a $300 million convertible notes offering. The senior unsecured convertible notes come with an annual interest rate of 2.125% and become payable semi-annually starting March 2025.
It said that this money is going to be used on other company activities including buying more Bitcoin as well as working capital, repaying debt and possible business acquisition according to Marathon Digital.
Marathon Digital Technologies’ stock dipped by 2.26% when the news about the convertible note offering broke, bringing its value down to $15.14. This adds up to a total decrease of 34% for the whole past year performance by this company’s stock since then.
This represented a decrease of approximately nine percent from estimated revenue expectations over Q2 but still marked a significant improvement from last year during that same time period when they only brought in seventy eight percent more money than before
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