Bitcoin miner Marathon Digital has bought an additional $249 million worth of Bitcoin after raising $300 million in a senior debt offering.
On August 14, the miners said The company used a portion of the bond sale proceeds to purchase approximately 4,144 Bitcoin (BTC) at an average price of approximately $59,500, bringing its “strategic Bitcoin reserve to over 25,000 BTC.” Added About X.
Marathon received net proceeds of approximately $292.5 million from its convertible senior notes due September 2031. The notes have an annual interest rate of 2.125% and are convertible into cash, Marathon shares or both.
MARA secured $300 million through an oversubscribed convertible senior notes offering. With the proceeds, we purchased 4,144 BTC (worth approximately $249 million), increasing our strategic Bitcoin reserve to over 25,000 BTC. More details here: pic.twitter.com/EKwKW6eSny
— MARA (@MarathonDH) August 14, 2024
Marathon said any cash left over from the bond sale will be used to purchase more Bitcoin and for “general corporate purposes,” possibly making strategic acquisitions.
A Marathon spokesperson told Cointelegraph that the company believes Bitcoin is its “top strategic financial asset” and is “employing a multi-pronged strategy to acquire Bitcoin.”
The latest Bitcoin hoard The company bought 2,282 BTC for $124 million in July, which Marathon CEO and Chairman Fred Thiel said was part of a “hodl strategy” — a misspelling of “hold” that has entered the crypto industry lexicon.
Marathon shares closed down 2.26% at $15.14. The company’s shares have now fallen nearly 34% since the beginning of the year. According to Go to Google Finance.
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In early August, Marathon’s second-quarter profit fell short of Wall Street expectations: Revenue of $145.1 million was 9% lower than expected but still up 78% year over year from the second quarter of 2023.
This comes after Bitcoin’s halving cut mining rewards in half, making cryptocurrency mining profitable at an all-time low.
Miner hash prices, a measure of mining profits, hit an all-time low in early August, leading Blockbridge to report that large public miners, including Marathon, which had the highest total mining costs in August, will struggle to turn a profit.
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