Marathon Sells $250-M Notes To Buy More Bitcoin

Bitcoin miner Marathon Digital Holdings Inc. announced it will sell $250 million of convertible senior notes and use the proceeds to buy more cryptocurrency, David Pan and Muyao Shen reported for Bloomberg News.

Marathon is one of several public mining firms that have started increasing Bitcoin holdings again in the wake of the April software code adjustment known as the “halving.”

The largest U.S. miner announced in July that it was adopting a strategy similar to MicroStrategy Inc., which has been accumulating cryptocurrency for several years, partly betting that the price will rise.

Marathon is one of several public mining firms that have started increasing Bitcoin holdings again in the wake of the April software code adjustment known as the “halving,” which slashed revenue.

In 2022, many miners were liquidating their coin reserves to stay afloat amid inflated energy prices and a series of industry meltdowns.

Miners mint cryptocurrency by competing to solve computational puzzles to unlock rewards in exchange for processing transactions on the Bitcoin blockchain.

The “hodling” strategy, as it is known in the crypto community, can enhance public mining companies’ status as a leveraged proxy on Bitcoin prices in the stock market and boost their share prices, which is a major source of financing for the miners, according to Ethan Vera, chief operating officer at Luxor Technology.