Marathon Digital Buys $249 Million Worth of Bitcoin After Oversubscribed Convertible Notes Offering

Marathon Digital has purchased $249 million worth of Bitcoin using funds from its recently announced $300 million private offering of convertible senior notes.

According to a statement posted on X by the US-based Bitcoin miner, the offering was oversubscribed, raising $300 million, which was reduced to $292.5 million after discounts and commissions.

Marathon Digital acquired 4,144 BTC at an average price of $59,500. The company noted that it plans to use the remaining $43 million from the offering as planned.

In its previous announcement of the private offering on August 12, 2024, Marathon outlined plans to use the funds to expand its Bitcoin holdings, make strategic acquisitions, and support general corporate purposes. Notably, it stated then that an additional $37.5 million senior notes offering could be sold depending on market conditions.

Meanwhile, this latest acquisition has increased Marathon’s strategic Bitcoin reserve to over 25,000 BTC, building upon a previous $100 million Bitcoin purchase. The move aligns with the company’s new “HODL” strategy, revealed on July 25, 2024, which involves retaining all mined Bitcoin and making occasional strategic market purchases.

Fred Thiel, CEO of Marathon Digital, has expressed strong confidence in Bitcoin’s long-term value. He advocates for its use as a reserve asset and encourages other firms to consider similar investments, reflecting a growing trend of corporate Bitcoin adoption.

These moves by Marathon Digital highlight the growing trend of public companies investing heavily in Bitcoin as both a strategic asset and a hedge against inflation.

Tokyo-based investment firm Metaplanet has also been aggressively buying the cryptocurrency as part of its new plan to make Bitcoin its strategic reserve asset. The firm recently completed its plan to acquire 1 billion yen worth of Bitcoin, bringing its total holdings to 245.9 Bitcoin. Metaplanet announced in April that its shift to a Bitcoin-first and Bitcoin-only strategy is a direct response to sustained economic pressures in Japan.

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