Marathon Digital has invested $249 million in Bitcoin using funds raised from a $300 million offering of convertible senior notes.

In an August 14 press release, Marathon, the largest public Bitcoin miner by realized hash rate, announced it raised $300 million, which was reduced to $292.5 million after deducting discounts and commissions. The company used $249 million of that amount to purchase 4,144 BTC at an average price of $59,500.

The funds were raised through a 2.125% senior notes debt security maturing in 2031, sold in an oversubscribed private offering to qualified institutional buyers. Marathon plans to use the remaining $43 million to acquire more Bitcoin and for general corporate purposes, including debt repayments and strategic expansions.

In July, Marathon purchased $100 million worth of BTC and announced it would retain all the Bitcoin it mined moving forward. With the addition of the 4,144 BTC, Marathon now holds over 25,000 coins valued at approximately $1.46 billion.

Despite the purchase, Marathon Digital’s stock fell 2.26%, trading at $15.14 by the close of business on August 14. Additionally, its revenues for the second quarter of 2024 fell short of expectations, reaching $145 million compared to $165.2 million in the first quarter of 2024. This shortfall may be attributed to the increased cost of Bitcoin mining, which doubled even as Marathon expanded its hash rate.

However, year-on-year growth was up 78%, with the miner earning $81.8 million in Q2 2023. The company also added approximately 25,000 new Bitcoin mining rigs, bringing the total to around 250,000 machines. This increase pushed its hash rate to 24.7 EH/s, surpassing some of its significant competitors, including Riot and Core Scientific.

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