- Marathon Digital Holdings, Inc. has announced a fresh pricing of its offering of $650 Million.
- The previously announced offering was of $500 million aggregate principal amount of notes.
- As per Marathon’s estimations, the net proceeds from the offering will be approximately $633.2 million.
Las Vegas based Bitcoin self-mining company, Marathon Digital Holdings, Inc. has announced the pricing of its offering of $650 Million in a private offering to qualified institutional buyers
The offering size was upped from the previously announced offering of $500 million aggregate principal amount of notes. It is important to note that issuance and sale of the notes are scheduled to settle on or about November 18, 2021, and are subject to the satisfactory closing conditions.
Marathon also provided the initial purchasers of the notes with an alternative, for settlement within a period of 13 days from, and including, the date the notes are first issued.
The notes will be senior, unsecured obligations of Marathon. They will gather interest at a rate of 1.00% per annum. These notes are payable semi-annually in arrears on June 1 and December 1 of each year. (beginning on June 1, 2022)
The notes will mature on December 1, 2026, if not repurchased, redeemed, or converted. Noteholders will have the right to convert their notes before June 1, 2026 only due to certain events and that too, during specified periods.
Noteholders may convert their notes at any time(from and after June 1, 2026,) at their election. This conversion can be done until the close of business on the second scheduled trading day immediately before the maturity date.
Marathon will manage conversions of notes by paying or delivering, as applicable, cash, shares of its common stock, or a combination thereof, at Marathon’s election.
As per Marathon’s estimations, the net proceeds from the offering will be approximately $633.2 million.
The statement clearly mentions that the sale and the offer of the notes and any shares of common stock authorized to issue after conversion of the notes have not been, and will not be, registered under the “Securities Act” or any other securities laws.
Today, SEC filed a subpoena against Marathon Digital and after Marathon Digital’s stock prices have gone down by 27% over the past 24 hours, this offering was announced. The offering will see it grant cash-redeemable notes to investors. Marathon reveals that it plans to use those funds for purchasing more Bitcoin mining machines.