Marathon Digital Holdings Prices $250 Million in Convertible Senior Notes
Marathon Digital Holdings, Inc. (NASDAQ: MARA) has recently announced the pricing of an oversubscribed offering of $250 million in aggregate principal amount of 2.125% convertible senior notes due 2031. The notes will be sold in a private offering to qualified institutional buyers under Rule 144A of the Securities Act of 1933.
Details of the Offering
Here are some key details about the offering by Marathon Digital Holdings:
– The initial purchasers have the option to buy up to an additional $50 million in notes.
– The offering is expected to close on August 14, 2024, subject to customary closing conditions.
– The notes will be unsecured senior obligations of MARA and will bear interest at a rate of 2.125% per annum.
– The notes mature on September 1, 2031, with options for repurchase, redemption, or conversion under certain conditions.
Conversion and Repurchase Options
Understanding the conversion and repurchase options of the notes:
– The notes are convertible into cash, shares of MARA common stock, or a combination of both at MARA’s discretion.
– Holders may require MARA to repurchase the notes on March 1, 2029, or upon certain fundamental changes.
– Specific corporate events or redemption calls may lead to an increase in the conversion rate for holders.
Use of Proceeds
Marathon Digital plans to allocate the proceeds as follows:
– Approximately $243.8 million in net proceeds, potentially reaching $292.5 million if the option to purchase additional notes is exercised.
– The funds will be primarily used to acquire additional bitcoin and for general corporate purposes.
About Marathon Digital Holdings
Marathon Digital Holdings is a prominent figure in digital asset computing:
– The company focuses on leveraging innovative technologies to support energy transformation and secure blockchain ledgers.
– Marathon Digital specializes in converting clean, stranded, or underutilized energy into economic value.
Hot Take: Embracing the Future
As a crypto enthusiast, staying informed about significant developments in the industry can provide valuable insights into the market landscape. Marathon Digital Holdings’ strategic move in pricing convertible senior notes worth $250 million showcases its commitment to expanding its digital asset portfolio and strengthening its position in the market. Keep an eye on how these funds are utilized to acquire bitcoin and drive corporate growth, shaping the company’s future trajectory in the digital asset space.
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