Marathon Digital Secures $950 Million for Bitcoin Acquisitions

Marathon Digital (NASDAQ: MARA), the largest Bitcoin miner, has closed a $950 million upsized offering of 0.00% convertible senior notes due 2032 to fund Bitcoin purchases and other corporate activities. The company plans to use the proceeds for debt repurchase, capped call transactions, and acquiring additional Bitcoin.

MARA stock rose by 3% in pre-market trading after the announcement. The notes can be converted into cash or shares at an initial conversion rate of 49.3619 shares per $1,000 principal amount, reflecting a conversion price of approximately $20.26 per share, while MARA trades above $17.

Key points:

Marathon holds 50,000 BTC as strategic reserves.
JPMorgan upgraded MARA from Neutral to Overweight and raised its price target from $19 to $22, citing undervaluation based on updated year-end 2025 hashrate targets.
Piper Sandler also increased its price target for MARA to $26, maintaining an Overweight rating due to the company's focus on Bitcoin mining and significant treasury holdings.