tl;dr
Marathon Digital plans to offer $250 million in convertible senior notes to fund Bitcoin acquisition and general corporate purposes. The notes, due in 2031, will be offered to qualified institutional buyers. The company aims to use the proceeds to acquire additional Bitcoin and for corporate needs, ...
Marathon Digital plans to offer $250 million in convertible senior notes to fund Bitcoin acquisition and general corporate purposes, following a trend of firms adding Bitcoin to their balance sheets amidst increased institutional demand. The notes, due in 2031, will be offered to qualified institutional buyers and the company aims to use the proceeds to acquire additional Bitcoin and for corporate needs, including working capital and debt repayment.
Other companies, such as MicroStrategy, have seen gains from similar strategies, and institutional firms adding Bitcoin to their balance sheets have significantly influenced market sentiment. MARA currently trades at $15.66, while MSTR stands at $131.67.
Marathon Digital has announced plans to offer $250 million aggregate amount worth of convertible senior notes. The company intends to use the new raise to fund more Bitcoin (BTC) acquisition plans and general corporate purposes. This year, firms continue to add Bitcoin to their balance sheet for several reasons.
Marathon Digital disclosed plans to offer $250 million in senior convertible notes based on market conditions, with the aim of funding the company’s Bitcoin acquisition plans as multiple firms continue to purchase the asset amid increased demand this year. Qualified institutional buyers are eligible for the notes, which become due in 2031.
The company will utilize the newly raised capital to acquire Bitcoin amidst increased demands from institutional investors, following in the footsteps of MicroStrategy. Most companies have recorded gains from the strategy amid macroeconomic conditions and other factors.
Metaplanet, Selmer Scientific, and Block Inc. have also added the asset to their balance sheet. These moves by institutional firms have significantly impacted the market sentiment, driving investors to the asset class. At press time, MARA trades at $15.66, declining 8% today, while MSTR stands at $131.67, a 2% drop.
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