Marathon Digital Holdings Inc. shares were down 11% to $67.62 after the company said it intends to offer $500 million of convertible senior notes due 2026 in a private offering.
The company said it expects to grant the initial purchasers of the notes an option to buy up to an additional $75 million in notes.
The notes will be senior, unsecured obligations of Marathon, will accrue interest payable semi-annually in arrears and will mature Dec. 1, 2026, unless earlier repurchased, redeemed or converted.
The notes will be redeemable, in whole or in part, for cash at Marathon’s option at any time, and from time to time, on or after Dec. 6, 2024, and on or before the 21st scheduled trading day immediately before the maturity date.
Marathon said it intends to use the proceeds from the offering for general corporate purposes, including the acquisition of bitcoin or bitcoin mining machines.
