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Marathon Digital said that it would offer these convertible notes to qualified institutional buyers with an aggregate principal amount of 2.125% with maturity in 2031.
On Monday, Bitcoin miner Marathon Digital Holdings (NASDAQ: MARA) announced plans to offer $250 million in convertible note offerings and use these proceeds to buy Bitcoins. However, soon after revealing this plan, the company’s convertible notes became oversubscribed amid strong institutional interest.
Later in the day, the Bitcoin miner shared further plans regarding the convertible notes. Marathon said that it would offer these convertible notes to qualified institutional buyers with an aggregate principal amount of 2.125% with maturity in 2031.
The convertible notes will be unsecured, senior obligations of MARA, and will bear an interest rate of 2.125% per annum. Marathon Digital has put the conversion rate at 52.9451 MARA shares common stock offering against a $1,000 principal amount of notes. This will be equivalent to an initial conversion price of approximately $18.89 per share. The Bitcoin miner said:
“The notes will be convertible into cash, shares of MARA’s common stock, or a combination of cash and shares of MARA’s common stock, at MARA’s election. Prior to March 1, 2031, the notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date.”
Marathon Digital said that it would be using the net proceeds from the sales to buy more Bitcoin and for other general purposes like working capital, expansion of existing assets, repayment of debt and other outstanding obligations, as well as strategic acquisitions.
Marathon Digital to Stamp “Made in USA” Bitcoins
Popular crypto publication Bitcoin Magazine announced that Marathon Digital would stamp all Bitcoin blocks mined in America with the “Made in USA” label. Fred Thiel, CEO of Marathon Digital, stressed this commitment adding:
“Every block mined by MARA Pool in the USA is proudly stamped ‘Made in USA’. We are the only large-scale miner who can do this because we run our own pool and ensure that all the blocks mined by MARA Pool are made in the USA.”
This development is in line with former US President Donald Trump’s commitment to ensure that every next BTC will be mined in the USA after he becomes the next US President. He also extended major support Bitcoin mining industry and believes that it would contribute towards America’s goal of becoming energy-dominant.
Despite this development, the Marathon Digital stock faced strong selling pressure dropping 11% on Monday. As the company navigates through the financial challenges of the Bitcoin halving event, the stock price continues to remain in pressure.
