Mining company Marathon announces HODL strategy, to purchase an additional 100 million dollars' worth of Bitcoin and issue convertible bonds.

The mining company Marathon Digital has announced a comprehensive HODL strategy, in addition to holding all mined bitcoins, they have also purchased an additional $100 million worth of bitcoin, currently holding over 20,000 bitcoins on their balance sheet. Furthermore, Marathon Digital is following in the footsteps of MicroStrategy by issuing $250 million in convertible bonds to buy more bitcoin. Even MicroStrategy's founder, Michael Saylor, commented saying, "Every company should have a strategic reserve of bitcoin!"

Adopting a Comprehensive HODL Strategy

Marathon Digital announced at the end of July that it has purchased an additional $100 million worth of Bitcoin, currently holding over 20,000 Bitcoins on its balance sheet, up from 18,488 Bitcoins as of the end of June.

Marathon Digital's Chairman and CEO, Fred Thiel, stated:

Adopting a comprehensive HODL strategy reflects our confidence in the long-term value of Bitcoin. We believe Bitcoin is the best reserve asset in the world and endorse the idea of sovereign wealth funds holding Bitcoin. We encourage governments and corporations to hold Bitcoin as a reserve asset.

The CFO, Salman Khan, also mentioned that prior to last year, the company held all mined Bitcoins but had sold some intermittently to cover operational costs.

Given the current favorable factors for Bitcoin, including increased institutional support and improvements in the macro environment, we are once again implementing this strategy and focusing on increasing the amount of Bitcoin we hold on our balance sheet. We look forward to continuing to leverage our technical expertise to support the Bitcoin and decentralized digital asset ecosystem.

Issuing Convertible Notes to Buy More Bitcoin

Marathon Digital announced on 8/12 its plans to issue $250 million of convertible senior notes through a private offering to qualified institutional buyers. These notes, due in 2031, are unsecured senior debts that pay interest semi-annually.

MAR plans to use the net proceeds from the note offering to purchase additional Bitcoin for general corporate purposes, which may include working capital, strategic acquisitions, expansion of existing assets, and repayment of debt and other outstanding obligations.

According to its second-quarter financial report, Marathon Digital had cash and cash equivalents of only $256 million. The company reported revenue of $310 million in the first half of the year and held 18,488 Bitcoins as of the end of June.