NEW YORK, DC, Thursday, August 15, 2024- Marathon Digital Holdings, one of the largest Bitcoin miners, has acquired $249 million worth of Bitcoin following a $300 million note sale aimed at expanding its business.
The company announced on August 14 that it used part of the proceeds to purchase approximately 4,144 Bitcoins at an average price of $59,500 each, increasing its total holdings to over 25,000 BTC.
The senior notes, due in September 2031, raised approximately $292.5 million, offering a 2.125% annual interest rate and can be redeemed for cash, Marathon stock, or a combination of the two.
The company plans to use the remaining funds to buy more Bitcoin and for other corporate purposes, including potential acquisitions.
Marathon has consistently expanded its Bitcoin holdings, including a purchase of 2,282 Bitcoins in July for $124 million.
Despite these investments, Marathon’s stock (MARA) has faced challenges, closing down 2.26% at $15.14 on the day of the announcement, and declining nearly 34% this year.
The company also reported lower-than-expected second-quarter earnings, with a 9% revenue shortfall at $145.1 million, though this marked a 78% increase from the same period in 2023.
The acquisition comes as the crypto mining industry faces profitability challenges, particularly following the recent Bitcoin halving, which has put pressure on miners with high operational costs.
