Marathon Digital Holdings, a mining company, listed on the Nasdaq, will place convertible bonds with a par value of $ 500 million. The received funding will go towards the purchase of bitcoin and equipment for its production.
Debt instruments maturing on December 1, 2026, will be offered to qualified investors. The latter will have an option to purchase additional securities for $ 75 million within the next 13 days.
Marathon Digital Holdings will reserve the right to repurchase the bonds, in part or in full, from December 6, 2024, to 21 trading days before the maturity date. That can happen if the share price exceeds 130% of the conversion price during the specified period.
The bonds provide for the payment of semi-annual coupons. The interest rate, conversion rate, and other essential conditions will be determined upon placement.
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As a reminder, in October, Marathon agreed with Silvergate Bank to open a revolving credit line for $ 100 million for one year with the option of prolongation.
At the end of the third quarter, the mining company kept 7,035 BTC as reserves with an estimate of $ 336.3 million at that time.
In November, the British Argo Blockchain announced plans to raise $ 57.5 million through the placement of bonds.