Marathon Digital Holdings, a publicly-traded bitcoin mining company, is planning to raise about $750 million through mixed equity offerings. The move is aimed at boosting its Bitcoin reserves.
On October 24, Marathon filed a new S-3 form, also known as a simplified security registration form, to the United States Securities and Exchange Commission (SEC). With the watchdog’s permission, Marathon intends to periodically sell securities such as common stocks, preferred stocks, warrants, and units, with a combined value not exceeding $750 million.
“This decision to embark on another round of share dilution aligns with Marathon’s expansion and “hodl” strategy to strengthen its position as the largest public mining firm with the most substantial Bitcoin reserves among its peers”, the company said.
Founded in 2010, Marathon is one of the most prominent publicly-traded crypto mining exchanges in computing power worldwide. The Las Vegas-based firm has data centers all over the United States, with one of its newest installations in Texas.
Requirements for the S-3 Form
Meeting a debt requirement is one of the demands of filling an S-3 form which Marathon was able to fulfill by reducing the principal amount of the debt by $417 million. To thank specific noteholders for their contribution to the achievement, the firm issued 31.7 million new shares to them last month.
Marathon had earlier liquidated some of its mined bitcoins this year in order to cover monthly operating expenses. However, the company still retains most of the Bitcoin accumulated since the 2021 bull run, mainly because of its extensive equity and debt financing over the past two years.
Previous Equity Raise
In December 2021, Marathon issued convertible notes worth $750 million with a coupon rate of 1%, which matures in 2026. Two months later, the Bitcoin miner filed an S-3 form to the SEC with the intention of raising $750 million in stock offerings at the time.
Since the second quarter of 2022 and the second quarter of 2023, Marathon has raised about half a billion dollars through equity financing, which has helped in solidifying its position as a prominent Bitcoin mining firm.
Marathon’s current move displays the increased competition and challenges in the Bitcoin mining community, especially with Bitcoin halving fast approaching.
