World's largest Bitcoin miner announces $250M raise to buy more Bitcoin

Marathon Digital Holdings has announced a $250 million offering of convertibles senior notes due in 2031, in a private offering toward “qualified institutional buyers.”

Marathon, the world’s largest Bitcoin (BTC) mining firm, is also considering an additional $37.5 million notes sale to initial purchasers, based on market conditions.

Marathon aims to use the $250 million to acquire more Bitcoin, according to an Aug. 12 announcement:

“MARA intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes, which may include working capital, strategic acquisitions, expansion of existing assets, and repayment of debt and other outstanding obligations.

The buying patterns of large Bitcoin holders, like BTC miners, can have a significant impact on Bitcoin price, due to the large amount of capital. Investors often use the buying patterns of large institutions to gauge the demand for Bitcoin.

Marathon Digital goes “full HODL” on Bitcoin as new reserve asset

Marathon has increased its Bitcoin holdings by $124 million during July, reaching a total of 20,818 BTC, worth over $1.14 billion as of Aug. 6.

Marathon plans to go “full hodl,” which is crypto slang for “hold on for dear life,” Fred Thiel, CEO and chairman of Marathon Digital, announced in a July 25 X post:

“Today Marathon is proud to announce that to strengthen our strategy of holding Bitcoin as our strategic treasury reserve asset, we have over the past month purchased $100 million in BTC, and will now go full HODL.”

Marathon acquired $100 million worth of Bitcoin in July, aiming to make BTC a strategic treasury reserve asset, as reported by Cointelegraph.

Marathon’s Bitcoin strategy is a positive development, considering that the world’s largest Bitcoin miner isn’t capitulating despite a 50% cut in block rewards due to the 2024 Bitcoin halving, which could still force other miners to sell BTC.