Marathon Digital Expands Note Offering To $650 Million After 27% Decline In Equity

Apparently Marathon Digital Holdings (NASDAQ: MARA) didn’t get the hint yesterday from shareholders. Despite the equity falling a whopping 27% in regular trading hours, falling from $75.92 to $55.40 off the back of an announced $500 million convertible debenture deal, the company has now upsized the financing.

Marathon revealed last night after the bell that it has increased the offering from an initial $500 million in aggregate principal amount of notes, to that of $650.0 million following apparent investor demand. The notes are slated to bear interest at a rate of 1.00%, and mature in December 2026.

The notes are unsecured, with interest payable semi-annually in arrears. Notes can be converted after June 1, 2026 at a price of $76.17 per share, a 37.5% premium to yesterday’s closing price. The notes are also redeemable at Marathon’s discretion in cash or stock after December 6, 2024, provided the equity is 130% above the conversion price.

If that’s not enough, the offering also has an option for the sale of an additional $97.5 million in additional notes, which has been granted to the initial purchasers.

The firm currently expects to net $633.2 million from the sale of the debt, which is expected to be used for acquiring bitcoin or bitcoin mining machines. The offering is currently expected to close November 18.

Marathon Digital last traded at $55.40 on the Nasdaq.

Information for this briefing was found via Edgar. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply