Marathon Digital Holdings Announces Exchange Agreement for Convertible Senior Notes

Marathon Digital Holdings, Inc. has entered into exchange agreements with certain holders of its 1.00% Convertible Senior Notes due 2026. Under the agreements, approximately $417 million worth of Notes will be exchanged for approximately 26.2 million newly issued shares of Marathon common stock. Marathon will not receive any cash proceeds from the issuance of the shares, and the final number of shares to be issued will be determined over a number of days. Marathon will also pay investors in cash for accrued and unpaid interest on the exchanged Notes.

Following the completion of the exchanges, approximately $331 million aggregate principal amount of the Notes will remain outstanding. It should be noted that the exchanges could affect the market price of Marathon’s common stock. The company has also stated that the transaction size could be reduced or the entire transaction could be canceled under certain circumstances.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy the Notes or shares of Marathon’s common stock. Investing in Marathon’s securities involves a high degree of risk, and potential investors should carefully consider the risks, uncertainties, and forward-looking statements outlined in the company’s most recent Annual Report on Form 10-K.

Marathon Digital Holdings is a digital asset technology company that focuses on supporting and securing the Bitcoin ecosystem. The company aims to become one of the largest and most sustainably powered Bitcoin mining operations in North America.

Source: Marathon Digital Holdings Inc. (NASDAQ: MARA)

Definitions:
– Convertible Senior Notes: A type of bond that can be converted into a predetermined number of shares of the issuing company’s common stock.
– Securities Act of 1933: A federal law that regulates the sale of securities to protect investors from fraud and ensure transparent financial markets.
– Registration: The process which a company’s securities are filed with the appropriate regulatory authorities to become publicly traded.
– Principal Amount: The initial amount of money invested in a bond or note, which is repaid to the investor at maturity.
– Exemption: A lawful provision that allows certain entities or transactions to be exempted from specific regulations or requirements.

Sources:
– Marathon Digital Holdings Inc.
– Securities Act of 1933