Marathon Digital Announces $700 Million Convertible Note Offering to Fund Bitcoin Purchases and Corporate Needs

Marathon Digital, a leading Bitcoin mining company, has unveiled plans to raise $700 million through a private convertible note offering. The funds will primarily be used to support the purchase of additional Bitcoin (BTC), repay existing debt, and finance general corporate needs.

In an announcement on Monday, November 18, Marathon, based in Florida, detailed that the convertible notes will accrue semi-annual interest and will mature on March 1, 2030. Investors holding these notes will have the option to convert them into cash, Marathon shares, or a combination of both. Additionally, the company has granted an option for initial purchasers to buy an additional $105 million in notes within a 13-day window.

Funding Breakdown and Bitcoin Strategy

The company intends to use up to $200 million of the proceeds to repurchase its 2026 convertible notes, with the remaining funds earmarked for Bitcoin acquisitions and general corporate activities. Marathon’s offering is structured to allow noteholders the option to request a buyback in December 2027, with redemption available starting from March 2028.

Currently, Marathon holds approximately 25,945 BTC, valued at around $2.3 billion based on current market prices, according to data from Bitcoin Treasuries. The firm’s ongoing strategy to acquire Bitcoin through these funding efforts underscores its commitment to increasing its holdings in the flagship cryptocurrency.

Institutional-Only Offering

The $700 million offering is being made available exclusively to qualified institutional buyers under Rule 144A of the U.S. Securities Act. The final interest rates and terms of the convertible notes will be determined based on market conditions at the time of pricing, Marathon explained.

This move follows the company’s $250 million convertible note offering earlier this year, which had a maturity date in 2031 and was similarly designed to fund Bitcoin acquisitions and corporate expenses.

As Marathon continues to expand its Bitcoin holdings and mining operations, this latest offering reflects the company’s continued commitment to strengthening its position within the cryptocurrency mining space.