Marathon to raise $ 500 million in debt to buy bitcoin and mining machines

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Marathon Digital, one of the largest Bitcoin mining companies in the United States, has said it wants to take advantage of the debt market to buy bitcoin and mining hardware.

The company said in a statement Monday that it intends to raise $ 500 million through an issuance of senior convertible notes that accumulate interest payable semi-annually and mature on December 1, 2026.

Marathon said it aimed to use the net proceeds for purposes such as “acquiring bitcoin or bitcoin mining machines.”

The plan, although currently a proposal, is the latest debt-issuance effort by Bitcoin mining companies in North America who are seeking cash to pay for expenses and equipment expansion.

It also comes just a month after Marathon said it got a $ 100 million revolving line of credit from Silvergate Bank backed by its BTC and USD.

North American publicly traded bitcoin mining companies, such as Marathon, Riot, Bitfarms, Hut8, and Argo, have all adopted the strategy of “grabbing” nearly all of the bitcoin they have mined since the start of the year to the end of the year. instead of liquidating them for capital expenditure.

The Block previously reported that in the third quarter, only six major Bitcoin mining companies in North America held more than 20,000 BTC, well worth $ 1 billion at the time. And they continued to add their October monthly production to the balance.

London-listed Argo, which went public on the Nasdaq this year, also announced a proposed public debt offering last week in hopes of raising $ 57 million for the construction of its facility in Texas.

Marathon is currently the largest BTC holder among North American state-owned Bitcoin mining companies. He said that as of the end of October, he had around 7,453 BTC ($ 490 million), of which 4,812 BTC ($ 317 million) he had bought in the market. The remaining amount came entirely from its mining operations.

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