On August 12, 2024, Marathon Digital Holdings, now rebranded as MARA, announced it would issue $250 million in senior convertible bonds. The raised funds will be used not only to buy more Bitcoin but also for general corporate needs such as working capital, acquisitions, asset expansion, and debt repayment, depending on market conditions.

These bonds will be offered to qualified institutional investors under Rule 144A of the Securities Act of 1933. Should Bitcoin stay around its current price of $60,000, the company could purchase about 4,166 BTC from the proceeds.

MARA's bonds will mature on September 1, 2031, with interest payments made twice annually starting March 1, 2025. Investors will have the option to convert the bonds into cash beginning March 1, 2029.

This is Marathon's second Bitcoin purchase announcement within a month. The previous one occurred on July 25, when the company spent $100 million to buy over 1,000 BTC.

In addition to these purchases, MARA has also adopted a "HODL" policy for its treasury, retaining all mined Bitcoin and regularly purchasing more, following a strategy similar to Michael Saylor's "never sell Bitcoin" approach at MicroStrategy.

These recent acquisitions have boosted MARA's total Bitcoin holdings to over 20,000 BTC, valued at approximately $1.3 billion, representing nearly 0.1% of Bitcoin's total supply of 21 million.

With these holdings, MARA is now the second-largest publicly traded company in terms of Bitcoin ownership, trailing only MicroStrategy, which holds 226,500 BTC. The competition to accumulate Bitcoin has seen new participants like Metaplanet, Boyaa Interactive, Semler Scientific, and OneMedNet, alongside well-known names like Tesla, Coinbase, Galaxy Digital Holdings, and Tether.

Source:  https://analysis.unich.com/marathon-digital-holdings-sells-250-million-in-bonds-to-raise-funds-for-buying-more-bitcoin/