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The Fort Lauderdale, Florida-based firm said Monday it plans to use $199 million of the expected $833 million in net proceeds from the sale to repurchase $212 million of its existing 2026 convertible notes, according to a statement.
The remainder will be allocated to acquiring additional Bitcoin and for general corporate purposes, including working capital, strategic acquisitions, expansion of assets, and repayment of other debt, the company said.
Convertible notes are a type of debt-based financial instrument that a company sells to raise capital. The notes are typically converted into equity shares at a later date, enabling investors to hold partial ownership of the company.
Marathon's latest offering comes as several firms globally begin acquiring and holding Bitcoin on their balance sheet following a market rally that has catapulted the price of the world's oldest crypto to more than $94,000.
The most prominent include MicroStrategy, holding up to $30 billion in Bitcoin, and Japan’s Metaplanet, which has scooped up more than 1,000 BTC this year, worth roughly $93 million to date.
Meanwhile, Semler Scientific (SMLR) acquired nearly $18 million in bitcoin earlier this month, the company said in a statement.
Starting December 1, 2027, holders of Marathon's convertible notes can ask the company to repurchase them for cash, though terms may change if major events like mergers, acquisitions, or delisting occur.
The notes, which mature on March 1, 2030, can also be converted into cash, MARA stock, or a mix of both, the company said.
The Bitcoin miner’s stock traded at $19.86 on Tuesday, up 9% on the day, while its after-hours price remains little changed, Google Finance data shows.
Edited by Sebastian Sinclair