Marathon Digital Holdings (MARA) Proposes $250 Million Convertible Senior Notes Offering

Marathon
Digital
Holdings,
Inc.
(NASDAQ:
MARA),
a
leader
in
digital
asset
compute
and
energy
transformation,
has
announced
its
intention
to
offer
$250
million
aggregate
principal
amount
of
convertible
senior
notes
in
a
private
offering.
The
proceeds
from
this
offering
are
planned
to
be
used
primarily
for
the
acquisition
of
bitcoin
and
general
corporate
purposes,
according
to

Marathon
Digital
Holdings.

Details
of
the
Offering

The
notes,
due
in
2031,
will
be
unsecured,
senior
obligations
of
MARA.
They
will
bear
interest
payable
semi-annually
starting
on
March
1,
2025,
and
maturing
on
September
1,
2031.
The
company
has
also
granted
the
initial
purchasers
an
option
to
buy
an
additional
$37.5
million
aggregate
principal
amount
of
notes
within
a
13-day
period
from
the
date
of
issuance.
The
notes
will
be
convertible
into
cash,
shares
of
MARA’s
common
stock,
or
a
combination
of
both,
at
MARA’s
discretion.

Redemption
and
Repurchase
Terms

On
or
after
September
6,
2028,
MARA
may
redeem
all
or
part
of
the
notes
for
cash,
provided
that
at
least
$75
million
aggregate
principal
amount
of
notes
remains
outstanding.
Additionally,
noteholders
will
have
the
right
to
require
MARA
to
repurchase
their
notes
for
cash
on
March
1,
2029.
The
interest
rate,
initial
conversion
rate,
and
other
terms
will
be
determined
at
the
time
of
pricing
the
offering.

Use
of
Proceeds

MARA
intends
to
utilize
the
net
proceeds
from
this
offering
primarily
to
acquire
additional
bitcoin
and
for
general
corporate
purposes.
These
purposes
may
include
working
capital,
strategic
acquisitions,
expansion
of
existing
assets,
and
the
repayment
of
debt
and
other
outstanding
obligations.

Private
Offering
Details

The
notes
will
be
offered
exclusively
to
qualified
institutional
buyers
under
Rule
144A
of
the
Securities
Act
of
1933.
The
offer
and
sale
of
the
notes
have
not
been
registered
under
the
Securities
Act
or
any
other
jurisdiction’s
securities
laws,
making
them
subject
to
specific
resale
restrictions.

About
Marathon
Digital
Holdings

Marathon
Digital
Holdings,
Inc.
is
a
global
leader
in
digital
asset
compute,
developing
and
deploying
innovative
technologies
to
support
a
sustainable
and
inclusive
future.
The
company
secures
leading
blockchain
ledgers
and
aids
in
energy
transformation
by
converting
clean,
stranded,
or
underutilized
energy
into
economic
value.

Forward-Looking
Statements

This
announcement
contains
forward-looking
statements,
including
those
regarding
the
completion,
size,
and
timing
of
the
offering,
the
use
of
proceeds,
and
the
terms
of
the
notes.
These
statements
are
based
on
current
expectations
and
involve
risks
and
uncertainties.
Factors
that
could
cause
actual
results
to
differ
materially
include
market
conditions
and
those
discussed
in
MARA’s
filings
with
the
SEC.

Image
source:
Shutterstock