On Monday, the enterprise bitcoin mining operation Marathon Digital Holdings announced the firm will raise $500 million from convertible senior notes in order to accrue more “bitcoin or bitcoin mining machines.”

Publicly-Listed Mining Operation to Raise $500M From Debt Markets to Purchase Bitcoin and ASIC Devices

Marathon (Nasdaq: MARA), is one of the largest U.S. mining operations and on November 15, the firm revealed it plans to utilize debt markets for “general corporate purposes, including the acquisition of bitcoin or bitcoin mining machines.” The news comes after significant growth during the course of 2021 and at the end of October, Marathon disclosed it had mined 417 bitcoin (BTC). With over $457 million worth of bitcoin held in its coffers, the 417 BTC revenue was considerably larger than the month prior.

” As in previous months, our bitcoin production was impacted both by maintenance-related outages in Hardin, MT, and an increase in the total network haveh rate,” Marathon CEO Fred Thiel said. Marathon’s executive stated that shipments of previously purchased miners are expected to accelerate in the next months and that we expect our bitcoin production will become more consistent as our scale.

In a press release sent to Bitcoin.com News, the company said on Monday that it plans to issue “$500,000,000 aggregate principal amount of convertible senior notes” that will mature on December 1, 2026. The notes will earn interest semi-annually, unless they are “repurchased or redeemed” or converted, Marathon’s press release notes.

“Marathon plans to use the net proceeds of the offering for general corporate purposes including the acquisition or mining of bitcoins,” the company stated.

Marathon Shares Have Risen More Than 230% in 6 Months — After Controversy Ensued, Bitcoin Mining Firm Dropped OFAC Transaction Filtering in May

The U.S. company’s shares listed on Nasdaq have done well in recent times and Marathon has been holding BTC on its balance sheet like its mining competitors Argo, Hut8, Riot Blockchain, and Bitfarms. Six months ago, MARA shares were trading hands for $22. 99 on May 18, and today shares swap for $75.92.

Bitcoin.com News reported on Marathon buying BTC for a reserve asset at the end of January following the company’s record-breaking acquisition of 70,000 ASIC bitcoin miners in December 2020. Marathon came under controversy this year when the enterprise mining operation mined its first OFAC-compliant block. Marathon was at that time filtering transactions in order to comply with the Office of Foreign Assets Control (OFAC’s) sanction guidelines.

However, the company dropped this filtering procedure after it was well established that the Taproot upgrade would happen. Marathon stated that the company’s mining pool would no longer filter transactions and would begin validating transactions in a way consistent with other miners who use .”

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Two months later, the firm revealed it purchased 30,000 S19j Pro Antminers from Bitmain and after it published July’s bitcoin production and mining operation it was revealed that Fidelity Investments owns a 7.4% stake in Marathon.

The latest financing proposal to leverage convertible senior note indicates that the firm believes in the industry’s rapid growth. At press time, Bitcoin’s hashrate has been once again nearing all-time highs and the current hashrate on November 15, is a whopping 181 exahash per second (EH/s).

What do you think about Marathon using debt markets to raise $500 million in order to acquire bitcoin and bitcoin mining rigs? Please comment below to let us know your thoughts on this topic.

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