Marathon plans to raise US$500 million from convertible senior notes to buy Bitcoin and mining equipment – ??Mining Bitcoin News

On Monday, corporate Bitcoin mining business Marathon Digital Holdings announced that the company will raise US$500 million from convertible senior notes to accumulate more “bitcoins or bitcoin mining machines.”

The publicly listed mining business will raise $500 million from the debt market for the purchase of Bitcoin and ASIC equipment

marathon (Nasdaq: MARA), is one of the largest mining operations in the United States. On November 15, the company revealed that it plans to use the debt market for “general corporate purposes, including the acquisition of Bitcoin or Bitcoin mining machines.” The news was released after significant growth during 2021. At the end of October, Marathon disclosed that it had mined 417 Bitcoins (Bitcoin). 417’s vault holds more than 457 million U.S. dollars worth of Bitcoin Bitcoin Income is much higher than the previous month.

Fred Thiel, CEO of Marathon, explained: “As in previous months, our Bitcoin production has been affected by the maintenance-related power outages of the Harding Power Plant and the increase in the total network hash rate.” “However, as we Shipments of previously purchased mining machines will accelerate in the coming months, and we continue to expect that our Bitcoin production will become more consistent as we expand,” the Marathon executive added.

In a press release sent to Bitcoin.com News, the company stated on Monday that it plans to issue “convertible senior notes with a total principal amount of $500,000,000” that will expire on December 1, 2026. These notes will receive interest every six months, unless they are “purchased, redeemed or converted” as indicated in Marathon’s press release.

“Marathon intends to use the net proceeds from the issuance for general corporate purposes, including the acquisition of Bitcoin or Bitcoin mining machines,” the company revealed.

Marathon’s stock price has risen by more than 230% in 6 months-controversy ensued, and the Bitcoin mining company cancelled OFAC transaction filtering in May

The US company’s NASDAQ-listed stock has performed well recently, and Marathon has always held it Bitcoin On its balance sheet, such as its mining competitors Argo, Hut8, Riot Blockchain and Bitfarms. Six months ago, MARA’s stock was trading at $22.99 on May 18, and today’s trading price is $75.92.

Bitcoin.com news Report About Marathon purchase Bitcoin The company was used as a reserve asset at the end of January Record-breaking acquisition 70,000 ASIC Bitcoin miners in December 2020. dispute This year, the corporate mining business has mined the first block that complies with OFAC standards. This means that Marathon was filtering transactions to comply with the Office of Foreign Assets Control (OFAC) sanctions guidelines.

However, the company Dropped After it is determined that a Taproot upgrade will occur, this filtering process. Marathon stated that the company’s mining pool will “no longer filter transactions” and “start verifying transactions in a manner consistent with all other miners using standard nodes.”

Two months later, the company revealed Buy After 30,000 S19j Pro Antminers from Bitmain released the Bitcoin production and mining business in July, it was revealed that Fidelity Investment Owns 7.4% of the shares In the marathon.

The latest financing proposal using convertible senior notes shows that the company continues to believe in the exponential growth of the Bitcoin mining industry.As of press time, Bitcoin’s computing power is once again Close to all-time high And the current computing power on November 15 is amazing 181 exahash (EH/s) per second.

What do you think of the Marathon using the debt market to raise 500 million US dollars to buy Bitcoin and Bitcoin mining equipment? Please tell us your thoughts on this topic in the comments section below.

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