Marathon Digital exchanges $417 million 1% convertibles for shares at discount

By Wendy Van Sickle

Columbus, Ohio, Sept. 20 – Marathon Digital Holdings, Inc. completed privately negotiated exchange agreements with some holders of its 1% convertible senior notes under which the company exchanged a total of $417 million principal amount of the convertibles for 31.7 million newly issued shares of its common stock, according to a news release.

On average, the transactions represented a 21% discount to the par value of the convertibles, resulting in about $101 million in cash savings to the company before transaction costs.

Marathon Digital said it has reduced its long-term convertible debt by approximately 56%.

Following the exchanges, $331 million principal amount of the convertibles will remain outstanding.

“For the first time in two years, Marathon’s combined cash and Bitcoin holdings now exceed its convertible debt. By generating savings that exceed the value issued in equity, improving our liquidity, and deleveraging the balance sheet, we believe we have significantly strengthened Marathon’s financial profile,” said Salman Khan, Marathon’s chief financial officer, in the release.

Marathon Digital is a digital asset company that mines cryptocurrencies with a focus on the blockchain ecosystem and the generation of digital assets. Headquarters are in Las Vegas.

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