MARA Holdings Inc. declared that it has obtained a $200 million line of credit, with a portion of its Bitcoin holdings serving as security.
The money may be used by MARA for other regular business needs as well as to take advantage of strategic business opportunities.
The news likely landed as a positive sign for investors as MARA’s stock price rose over 1% as extended gains. At the press time, the stock is up 1.5% at $17.17 a piece.
The firm has not provided many details about the financial facility except for the usage of the funds for the “general corporate functions.” Marathon Digital Holdings changed its name to MARA Holdings, Inc. in August 2024.
MARA Issues Convertible Notes
Today’s credit facility news comes after MARA had previously made the decision to pay $249 million for Bitcoin. It has successfully executed a $300 million offering of convertible senior notes in August, with the majority of the proceeds going into purchasing Bitcoin.
The principal aim of the money from the offering was to buy more Bitcoin. As per Marathon’s statement, the funds will also be used to meet fundamental business requirements such as debt repayment, asset expansion, working capital, and strategic acquisitions.
MicroStrategy possesses over 26,000 tokens, or 0.12% of the entire supply of Bitcoin, according to Bitbo data. These tokens are expected to be worth close to $1.8 billion.
Marathon Digital Faces Noise Pollution Complains
Apart from the positive news, more than twenty Granbury, Texas, citizens sued cryptocurrency mining business Marathon Digital Holdings on October 4, 2023.
The plaintiffs in the lawsuit allege that the nearby Bitcoin mining plant in Marathon is producing “intolerably loud” noise. The lawsuit was filed in a Hood County Court.
According to the lawsuit, the noise generated by the mining activity is a “nuisance” that is giving those who live close to the mine “extreme discomfort and annoyance.” The plaintiffs claim that because of the “constant, unrelenting” nature of the noise and vibrations coming from Marathon’s site, the disturbance is more than just an annoyance and has had a real “sensory, emotional, psychological, and health impacts.”
In addition to the direct effects on lifestyle and health, the lawsuit poses major financial issues for the impacted residents. The plaintiffs claim that “increases in their electricity bills” are the result of the mining operation’s significant energy use. Furthermore, they assert that having the noisy facility there has caused “decreases in their property values.”