28.07.2025 18:20
Marathon Digital Holdings, a prominent Bitcoin miner, announced a significant fundraising achievement, raising $950 million through the issuance of convertible senior notes maturing in 2032. This substantial capital injection immediately boosted investor confidence, driving a 3% surge in MARA stock during pre-market trading on July 28th.
The company intends to allocate the newly acquired funds strategically across several key areas. These include debt reduction, strategic capped call transactions designed to enhance profitability, further Bitcoin acquisitions bolstering their already impressive holdings, and general corporate operational expenses. Investors can convert the notes into cash, Marathon Digital common stock, or a blend of both, with an initial conversion rate pegged at 49.3619 shares per $1,000 principal amount. This equates to an initial conversion price of approximately $20.26 per share, noteworthy given the stock's current trading price above $17.
This considerable capital infusion comes at a time when Marathon Digital holds a significant position in the Bitcoin market. Currently the second-largest Bitcoin treasury holder, trailing only Michael Saylor's Strategy, the company boasts a substantial 50,000 BTC reserve, underscoring its commitment to the cryptocurrency's long-term value.
Adding further momentum to the positive news, JPMorgan Chase & Co. upgraded its rating on MARA stock from Neutral to Overweight, simultaneously increasing its price target from $19 to $22. This bullish assessment stems from JPMorgan's belief that Marathon Digital's current market valuation fails to accurately reflect the company's ambitious year-end 2025 hashrate target of 75 exahashes per second (EH/s). The analysts specifically praised Marathon's "infrastructure-light" model, a strategy that prioritizes investment in revenue-generating assets such as ASIC miners over extensive capital expenditures on power infrastructure and data centers. While this approach leads to higher mining costs due to hosting fees, it's viewed as strategically advantageous by JPMorgan.
