Cryptocurrency mining giant Marathon (Nasdaq: MARA) wants to increase its investment in the largest cryptocurrency by market capitalization. The company said in a press release it plans to offer $500 million aggregate principal amount of convertible senior notes due December 1, 2026 to buy more bitcoin (EXANTE: Bitcoin) and ASICs.
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While the deal is yet subject to market and other conditions, Marathon says that noteholders could convert their notes only in "certain circumstances and during specified periods." The interest rate, initial conversion rate and other terms of the notes will be determined at the pricing of the offering.
"Marathon intends to use the net proceeds from the offering for general corporate purposes, including the acquisition of bitcoin or bitcoin mining machines," the company said.
The move comes after investment firm BlackRock, which has $9 billion in assets under management, acquired stakes in Marathon Digital Holdings and Riot Blockchain. As per the June 30 Form 13F, BlackRock acquired 6.71% of Marathon Digital Holdings (about $207 million) and 6.61% of Riot Blockchain (about $175 million). The total value of its positions amounts to $382.96 million.
Marathon shares amid the news are falling by over 9%. As of press time, MARA is trading at the $69.03 mark with a market cap of $6.81 billion.
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