Marathon Digital Sells $300 Million Convertible Notes to Purchase Bitcoin

According to BlockBeats, on August 28, Bitcoin mining company Marathon Digital sold $300 million in convertible notes to acquire 4,144 Bitcoins, mirroring the strategy employed by MicroStrategy. MicroStrategy's Executive Chairman Michael Saylor has significantly increased his company's Bitcoin holdings through large-scale borrowing, making it one of the largest Bitcoin holders globally. Marathon Digital's move highlights the challenges faced by the mining industry, where mining profits have significantly declined, forcing companies to explore alternative methods to sustain operations. Due to Bitcoin halving and increased mining difficulty, Marathon Digital has adopted a 'fully HODL' strategy, retaining all mined Bitcoins and using debt financing to purchase more. This approach aims to bolster the company's reserves by holding Bitcoin and making opportunistic purchases during market lows, with the expectation that future Bitcoin price increases will yield higher investment returns. Industry experts believe that as Bitcoin mining profitability decreases, the pressure on mining companies intensifies, and debt financing may see a resurgence across the sector. Marathon's strategy is viewed as a pragmatic response to current industry challenges and reflects its confidence in Bitcoin's long-term value.