Marathon Digital, a digital asset technology company with a focus on Bitcoin, announced a private placement that resulted in a securities purchase agreement for the sale of 15,000 shares of Series A redeemable convertible preferred stock.
The company has managed to raise approximately $14.25m in gross proceeds from the offering, before deducting the placement agent’s fees and other estimated offering expenses.
H.C. Wainwright & Co. played a pivotal role as the exclusive placement agent for the offering.
Operating within the Bitcoin ecosystem, Marathon Digital Holdings provides support and security services. Currently, the company is working towards becoming one of the largest and most sustainably powered Bitcoin mining operations in North America.
The new funding is expected to be used for general corporate purposes, especially if the Series A preferred stock is converted or otherwise not redeemed after 120 days from the closing of the placement.
Additionally, the Series A preferred stock allows its holders to vote on a proposal to increase the authorised shares of the company’s common stock at an annual or special meeting of the company’s stockholders. This stock, however, will not be permitted to vote on any other matter. Holders of the Series A preferred stock also agreed not to transfer their shares of preferred stock until after the meeting of company stockholders.
The closing of the offering is expected to occur on or about June 8, 2023, subject to the satisfaction of customary closing conditions. More detailed information about the securities and the terms of the offering will be included in a Current Report on Form 8-K to be filed with the United States Securities and Exchange Commission.
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