Marathon Sells Notes To Buy Bitcoin

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Bloomberg Aug 14 03:12 · 14.1k Views

Bitcoin miner Marathon Digital Holdings Inc. said it will sell $250 million of convertible senior notes and use the proceeds to buy more of the cryptocurrency. Bloomberg's David Pan as more.

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Transcript

  • 00:00 Walk us through this booth.
  • 00:01 It's not too often that you see a Bitcoin miner going out selling notes to buy Bitcoin.
  • 00:07 Exactly.
  • 00:07 I think what makes it really interesting is that
  • 00:11 crypto mining companies, especially the public ones,
  • 00:13 they usually do not bet Bitcoin a let alone buying Bitcoin through that financing.
  • 00:18 Rarely do they do that.
  • 00:19 So I think this is Marathon's latest effort to position itself
  • 00:23 to be like a leveraged a proxy on Bitcoin prices in the stock market to keep the company's value and the investors from walking away as the competition in the industry heats up and the profit margins getting thinner and thinner after the having it's all fun and games while the price of an asset that you buy on leverage goes up.
  • 00:45 But
  • 00:46 what happens when it goes down?
  • 00:47 As we just heard from Michael Saylor, volatility,
  • 00:50 it's a feature, not a bug when it comes to Bitcoin,
  • 00:53 right?
  • 00:53 But like we have to
  • 00:56 remember that, you know, like a lot of these mining companies, they're very bullish on Bitcoin.
  • 01:00 They have a very optimistic
  • 01:02 outlook for Bitcoin prices by holding Bitcoin, by loading,
  • 01:07 loading Bitcoin on on their balance sheet.
  • 01:09 They're hoping that they can just, you know,
  • 01:11 ride a wave.
  • 01:12 And, you know, they're hoping that there's gonna be another rally to boost the value.
  • 01:16 Yeah.