Marathon Digital borrows to buy Bitcoin to tackle mining challenges

ChainCatcher news, Bitcoin mining company Marathon Digital recently sold $300 million in convertible notes to purchase 4,144 bitcoins, following the strategy of MicroStrategy.

MicroStrategy's Executive Chairman Michael Saylor has made large-scale purchases of Bitcoin through borrowing, making his company one of the largest holders of Bitcoin in the world. Marathon Digital's move reflects the challenges faced by the mining industry: mining profits have significantly declined, and mining companies are forced to find other ways to sustain operations.

Industry experts believe that as Bitcoin mining profit margins decrease, the pressure on mining companies increases, and debt financing may see a revival across the industry. Marathon's strategy is seen as a pragmatic choice to address the current challenges in the industry, while also reflecting its confidence in the long-term value of Bitcoin.