2023-10-27 23:12:32
© Reuters. Marathon will raise US$750 million to invest in Bitcoin mining
Blockmarket – Marathon Digital (NASDAQ:) Holdings, one of the largest Bitcoin miners in the world, shared a document with the United States Securities and Exchange Commission (SEC) announcing that it will raise the equivalent of US$750 million to invest in its business.
The amounts will be raised through the issuance of new shares, which will be sold to the market, as well as through the acquisition of new debts. As highlighted in the presented report, the funds will be directed to the acquisition of new equipment to reinforce the cryptocurrency mining fleet.
It is important to highlight that industrial Bitcoin mining is an activity that requires high-cost equipment, which consumes a lot of electricity. This high cost of the activity is one of the factors that provide security for the protocol.
Fall in the mining industry
Publicly listed Bitcoin miners performed very negatively with the arrival of the bear market in 2022. Marathon shares fell by as much as 95% during the market bottom.
Another noteworthy point is that Bitcoin’s mining difficulty continued to rise while the price was traded below US$20,000, which made the activity considerably less profitable.
In turn, the recent rise in the price is certainly bringing relief to mining companies. Marathon shares have risen around 3.38% in the last month, according to data at the time of publishing this article.
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