Marathon Selling Convertible Senior Notes for Utilizing Proceeds in Acquiring Bitcoin Mining Equipment
Marathon Digital Holdings, which is the biggest Bitcoin mining company in the US, is planning to raise funds to the tune of US$ 500 Million because it wants to expand its Bitcoin mining operations and for which it requires to get more mining rigs. However, for the purposes of raising funds, the miner has decided to sell convertible senior notes, which otherwise it was holding for a very long time.
Marathon Digital Holdings is a listed company in the US that is known at NASDAQ by its registered name as “MARA”. It is currently the biggest Bitcoin mining farm in the US which is famous for the mass production of Bitcoins in the world. The past two years for Marathon were undoubtedly the best business years for the miner. The revenue collection in these two years was not only phenomenal but also enabled Marathon to increase its mining capacity.
These days, Bitcoin is once again up and has gone past US$ 60,000 price against each coin. Experts of crypto are suggesting that the time has come when Bitcoin’s value will continue to acquire more and more gains. Some people are even suggesting that a single unit of Bitcoin will be traded for US$ 100,000/- and that time is very near. Considering the past performance of Bitcoin, and its continuously increasing price, Marathon has come to believe that it is short of mining rigs. Marathon definitely wants to capitalize on the increased demand for Bitcoin in the crypto market.
In this connection, Marathon is looking at the option where it can acquire further and improved Bitcoin mining rigs. The acquisition is deemed because the mining company wishes to increase its mining capacity and ensure that it keeps further revenues. So far Marathon has, in its ownership, about 417 Bitcoins which it had earned during the minting process. The value of these coins with Marathon as of today is more than US$ 457 Million. In an effort to introduce expansion and boost its minting capacity, Marathon is aiming at utilizing debt markets.
It was on 15th November 2021 when an official announcement was made from the news desk of Marathon. The announcement suggested that Marathon wants to acquire additional mining equipment so that it can collect more Bitcoins for itself. In pursuance of this objective, Marathon wishes to sell convertible senior notes in an open market sale. The miner is expecting to sell these notes for a price which is above US$ 500 Million.
Fred Thiel, who is the CEO at Marathon, said that their mining operations were adversely impacted in the initial months of this year. There were power outages which caused low Bitcoin production. Resultantly, the company couldn’t mine Bitcoin and fell short of its production. However, with additional and improved machines, not only the capacity will be increased but also the miner’s share will be boosted, said Thiel.
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Text source: Coinfrog
