Bitcoin
miner
Marathon
Digital
CEO
Fred
Thiel
suggested
that
the
firm
could
raise
capital
through
convertible
bonds
to
purchase
more
of
the
flagship
digital
asset
in
the
future.
This
follows
the
firm’s
recent
purchase
of
$100
million
worth
of
Bitcoin,
raising
its
total
holdings
to
over
20,000
BTC.
Future
purchases
In
a
Telegram
message
to
CryptoSlate,
Thiel
said
the
publicly
traded
Bitcoin
miner
could
buy
more
of
the
top
asset
from
the
open
market
when
conditions
are
favorable
for
its
shareholders.
He
stated:
“We
will
do
it
when
we
think
conditions
suggest
it’s
the
right
thing
to
do
from
a
shareholder
perspective.”
This
statement
aligns
with
the
firm’s
promise
to
make
periodic
strategic
acquisitions
of
the
top
crypto
and
adopt
a
full
HODL
strategy.
Following
the
miner’s
recent
purchase,
Thiel
described
the
digital
asset
as
“the
world’s
best
treasury
reserve
asset”
and
urged
“governments
and
corporations
to
all
hold
bitcoin
as
a
reserve
asset.”
Meanwhile,
Marathon’s
thirst
for
Bitcoin
is
unsurprising,
considering
the
firm
is
the
largest
mining
company
in
the
world.
Additionally,
this
is
not
the
first
time
the
miner
has
purchased
Bitcoin
outside
of
its
mining
production,
as
it
procured
$150
million
worth
of
Bitcoin
in
January
2021.
Convertible
notes
When
questioned
about
how
future
purchases
would
be
funded,
Thiel
suggested
that
the
firm
adopt
the
convertible
notes
strategy,
pointing
out
that
the
firm
was
familiar
with
these
processes.
He
stated:
“It
all
will
come
down
to
a
cost
of
capital
decision.
We
have
done
converts
in
the
past
(fall
2021)
so
we
are
familiar
with
using
converts
as
a
financing
tool.”
Convertible
debt
allows
investors
to
convert
their
debt
into
equity
later,
usually
at
a
discount
to
the
share
price
at
conversion.
This
type
of
financing
lets
companies
raise
capital
without
immediately
diluting
shareholder
value.
MicroStrategy
has
popularized
this
strategy
with
frequent
Bitcoin
purchases
over
the
past
year.
The
firm
holds
over
200,000
BTC,
making
it
the
largest
corporate
Bitcoin
holder.
Mentioned
in
this
article
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Author: Oluwapelumi Adejumo
