Marathon Digital is planning a $250 million private offering of convertible senior notes, intensifying its commitment to expanding Bitcoin holdings.

Bitcoin mining firm Marathon Digital Holdings is seeking to raise $250 million through a private offering of convertible senior notes due in 2031 as the crypto mining firm looks to double down on its Bitcoin(BTC) holding strategy.

In an Aug. 12 press release, the Florida-headquartered firm said the funds would be used to acquire additional Bitcoin as part of the company’s ongoing strategy to increase its crypto holdings.

The convertible notes, which will be offered to qualified institutional buyers under Rule 144A of the Securities Act of 1933, are unsecured, senior obligations of Marathon Digital and will bear interest payable semi-annually, the press release reads. The Bitcoin mining firm also plans to grant initial purchasers an option to acquire an additional $37.5 million of the notes.

Despite the news, Marathon Digital’s stock fell 3.11% in pre-market trading.

Marathon Digital buys more Bitcoin

Marathon Digital’s latest move follows the firm’s recent acquisition of $100 million worth of Bitcoin in late July, pushing its holdings to over 20,000 BTC.

The initiative aligns with Marathon’s goal to double its Bitcoin mining capacity in 2024, targeting a hash rate of 50 EH/s. As crypto.news reported earlier, Marathon’s operations recently achieved a hash rate of 24.7 EH/s, surpassing its rivals. If Marathon meets its 50 EH/s target, it will have more than doubled its hash rate since the start of 2024.

Previously, Marathon Digital also indicated that as part of its new approach, it will retain all Bitcoin mined in its operations and will “periodically make strategic open market purchases.” Marathon Digital chief executive Fred Thiel said at the time that Bitcoin’s purchases reflect the firm’s “confidence in the long-term value” of the cryptocurrency as a “reserve asset.”