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Marathon to generate $500 million in debt to acquire Bitcoin and mining machines By BTC Peers


© Reuters Marathon to generate $500 million in debt to acquire Bitcoin and mining machines

Marathon Digital is a US-based crypto mining company that has disclosed it plans to tap the credit market in order to acquire and to mine hardware.

On Monday, the company announced that it planned to raise $500,000,000 by issuing convertible senior notes. These will be due December 1, 2026. Marathon said that the company plans to use net proceeds for many purposes, including the acquisition of Bitcoin or Bitcoin mining devices.

This is the latest effort to issue debt by Bitcoin mining companies in North America, who are looking for funds to finance equipment expansion and expenditures. For now, however, this proposal is only a concept. The move comes less than a month following the $100 million Marathon secured with Silvergate Bank via a revolving loan using USD or Bitcoin.

Many publicly-listed North American Bitcoin mining companies like Marathon, Riot, Bitfarms, Hut8, and Argo, have all decided to “hodl” almost all the Bitcoins they mined year-to-date instead of liquidating the asset for capital expenditure.

Marathon currently has the highest BTC holdings among North American Bitcoin mining firms. Reports indicate that the company held approximately 7,453 BTC at October’s end. It also purchased 4,812 BTC from the marketplace. Its mining operations generated the rest of its remaining funds.

BTC PEERS reported in May that Compute North, a Nasdaq listed company, had announced a partnership agreement to employ around 73,000 BTC miners in a Texas data center.

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