According to Bloomberg News, Marathon Digital Holdings Inc, intends to sell $500 million of convertible securities so that it can buy additional Bitcoin and equipment for mining to carry out the processes related to cryptocurrency transactions.
The private offering of the 5-year notes would be for so-called institutional investors that are qualified, the form-based in Las Vegas stated in a statement that it released Monday. Investors will be able to enjoy the provision of converting the notes to common stocks under certain conditions and during the time of specified periods.
Marathon Digital Holdings Inc is not the first firm to dispose of convertible bonds so that it can buy more Bitcoin. MicroStrategy Inc, which is an enterprise software maker started to acquire debt to purchase Bitcoin in the middle of 2020, which also included convertible bonds, linking the stocks it owned even closer to the largest cryptocurrency of the world, according to Bloomberg News.
The shares of Marathon dropped by as much as 9.5% registering at $68.68 Monday. Marathon had earlier closed November 9th at a record high and has registered six times rise in the current year.
