Marathon Digital Holdings Inc. plans to sell $500 million of convertible securities to buy additional Bitcoin and mining equipment to process cryptocurrency transactions.
The private offering of the five-year notes would be to so-called qualified institutional investors, the Las Vegas-based firm said in a statement Monday. Investors will have the right to convert the notes to common stock in certain circumstances and during specified periods.
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Marathon isn’t the first to sell convertible bonds to buy more Bitcoin. Enterprise software maker MicroStrategy Inc. started acquiring debt to buy Bitcoin since mid-2020, including convertible bonds, linking its stock even closer to the world’s largest cryptocurrency.
Shares of Marathon fell as much as 9.5% to $68.68 on Monday. Marathon had closed at a record high on Nov. 9, and is up more than sixfold this year.
