Marathon Digital acquisition wind farm, issuing zero-coupon convertible bonds to buy BTC

Marathon Digital, the largest publicly traded BTC miner, announced the acquisition of a wind farm in Texas to achieve broader deployment of renewable energy. The transaction is currently pending regulatory approval and is expected to be completed in the first quarter of 2025. Additionally, Marathon Digital recently issued convertible bonds to repay old debts and buy more BTC.

Marathon Digital acquisition風電場

MARA will develop and operate a 114-megawatt wind power capacity to power the user data center, and the energy cost is zero. By operating data centers at the location, MARA hopes to alleviate grid congestion and promote the development of renewable energy.

MARA Chairman and CEO Fred Thiel said:

This acquisition creates long-term value for the energy and data center industries, while laying the blueprint for sustainability initiatives.

The site will use ASIC Mining hardware that should have been scrapped or sold to the secondary market. It will power them through reuse and 100% renewable, zero marginal energy costs, and reduce the dropBTC production cost through vertical integration. However, the transaction still needs to wait for regulatory approval, which is expected to be completed in the first quarter of 2025.

Marathon Digital re-issuance 0% convertible bond

Marathon Digital announced at the end of July that it has adopted a comprehensive HODL strategy. In addition to fully retaining its self-mined BTC, it has also begun to follow the MicroStrategy by using its own funds and issuance convertible bonds to purchase additional BTC.

August 2024: issuance of a principal amount of 300 million US dollars, with an Interest Rate of 2.125%, convertible senior notes due in 2031.

November 2025: issuance of a total principal amount of 1 billion US dollars, with an Interest Rate of 0% and convertible senior notes due in 2030.

December 2025: issuance of a total principal amount of 850 million US dollars with an Intrerest Rate of 0%, convertible preferred notes maturing in 2031.

In the recent 2 issuances of convertible bonds, in addition to buying BTC as a priority, a portion of the funds were allocated to redeem the 2026 convertible bonds (with an interest rate of 1%) issued earlier, in order to reduce drop company's interest cost.

Marathon Digital, a mining company, is the second largest public company holding BTC, currently owning 34,794 BTC, second only to MicroStrategy.

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