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Marathon Digital | 8-K: Marathon Digital Holdings, Inc. Completes $300 Million Offering of 2.125% Convertible Senior Notes Due 2031, Purchases $249 Million of Bitcoin

SEC ·  Aug 15 05:31

Summary by Moomoo AI

On August 14, 2024, Marathon Digital Holdings, Inc. (Marathon Digital) successfully completed the sale of $300 million in 2.125% convertible senior notes due 2031. The offering, which was announced on August 12, 2024, was conducted as a private placement to qualified institutional buyers under Rule 144A of the Securities Act of 1933. The sale included an additional $50 million in notes issued following the full exercise of an option granted to initial purchasers, which was completed on the same day. Marathon Digital reported net proceeds of approximately $292.5 million after initial purchasers' discounts and commissions, excluding estimated offering expenses. The company has stated its intention to use the net proceeds to purchase additional bitcoin and for general corporate purposes, including working capital, strategic acquisitions, expansion of existing assets, and repayment of...Show More
On August 14, 2024, Marathon Digital Holdings, Inc. (Marathon Digital) successfully completed the sale of $300 million in 2.125% convertible senior notes due 2031. The offering, which was announced on August 12, 2024, was conducted as a private placement to qualified institutional buyers under Rule 144A of the Securities Act of 1933. The sale included an additional $50 million in notes issued following the full exercise of an option granted to initial purchasers, which was completed on the same day. Marathon Digital reported net proceeds of approximately $292.5 million after initial purchasers' discounts and commissions, excluding estimated offering expenses. The company has stated its intention to use the net proceeds to purchase additional bitcoin and for general corporate purposes, including working capital, strategic acquisitions, expansion of existing assets, and repayment of debt. The notes, which are senior unsecured obligations, will bear interest semiannually and are set to mature on September 1, 2031, unless earlier converted, redeemed, or repurchased. The notes are convertible into Marathon Digital's common stock at an initial rate of 52.9451 shares per $1,000 principal amount, equivalent to an initial conversion price of approximately $18.89 per share. The company also disclosed the acquisition of approximately 4,144 bitcoins for $249 million, at an average price of $59,500 per bitcoin, funded by the proceeds from the note offering. The remaining proceeds are earmarked for further bitcoin acquisitions and corporate purposes.

This announcement is a separate document:

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