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Marathon Digital Holdings, Inc. Completes $300 Million Offering of 2.125% Convertible Senior Notes Due 2031, Purchases $249 Million of Bitcoin
Fort Lauderdale, FL, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Marathon Digital Holdings, Inc. (NASDAQ: MARA) (“MARA” or the “Company”), a global leader in leveraging
About this update from Mara Holdings, Inc.
[{"type":"text","content":"Fort Lauderdale, FL, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Marathon Digital Holdings, Inc. (NASDAQ: MARA) (“MARA” or the “Company”), a global leader in leveraging digital asset compute to support the energy transformation, today announced the closing of its offering of 2.125% convertible senior notes due 2031 (the “notes”). The aggregate principal amount of the notes sold in the offering was $300 million, which includes $50 million aggregate principal amount of notes issued pursuant to an option to purchase, within a 13-day period beginning on, and including, the date on which the notes were first issued, granted to the initial purchasers under the purchase agreement, which the initial purchasers exercised in full on August 13, 2024 and which additional purchase was completed on August 14, 2024. The notes were sold in a private offering to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The net proceeds from the sale of the notes were approximately $292.5 million, after deducting the initial purchasers’ discounts and commissions but before estimated offering expenses payable by MARA. On August 14, 2024, MARA also announced that, during the period between August 12, 2024 and August 14, 2024, MARA acquired approximately 4,144 bitcoin for approximately $249 million in cash, using proceeds from the sale of the notes, at an average price of approximately $59,500 per bitcoin, inclusive of fees and expenses. MARA intends to use the remaining net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes, which may include working capital, strategic acquisitions, expansion of existing assets, and repayment of debt and other outstanding obligations. The notes are unsecured, senior obligations of MARA and bear interest at a rate of 2.125% per annum, payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2025. The notes will mature on September 1, 2031, unless earlier repurchased, redeemed or converted in accordance with their terms. Subject to certain conditions, on or after September 6, 2028, MARA may redeem for cash all or any portion of the notes at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued an...