Marathon Digital Holdings is issuing $850 million in convertible notes, with the potential to raise this amount to $1 billion. This move is designed to repurchase existing debt, acquire Bitcoin, and fuel further corporate initiatives amid a rejuvenating crypto market.
The Florida-based company plans to utilize $199 million of the expected net proceeds—approximately $833 million—from the sale to buy back $212 million of its 2026 convertible notes. The remaining funds will be allocated toward acquiring more Bitcoin and other general corporate purposes, such as working capital, strategic acquisitions, expanding assets, and repaying other debts.
Convertible notes, which are a type of debt instrument, can be eventually converted into equity shares, allowing investors partial ownership in the company.
This decision comes at a time when several firms worldwide are increasing their Bitcoin holdings following a surge in crypto prices, which has seen Bitcoin rise above $94,000. Notable firms, such as MicroStrategy, which holds approximately $30 billion in Bitcoin, and Japan’s Metaplanet, which has acquired more than 1,000 BTC, are leading this trend. Additionally, Semler Scientific recently purchased nearly $18 million worth of Bitcoin.
Starting December 1, 2027, holders of Marathon’s convertible notes will have the option to request that the company buy them back for cash, with conditions that may change in the event of significant occurrences like mergers or acquisitions.
The notes, maturing on March 1, 2030, provide an option for conversion into cash, Marathon (MARA) stock, or a combination of both.
On the market, Marathon’s stock saw a rise of 9% on Tuesday, trading at $19.86, although its after-hours price showed little variation.
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