Key Points
- MARA Holdings has successfully closed an $850 million offering of zero-coupon convertible senior notes due 2031, with plans to use the majority of proceeds to acquire bitcoin and expand operations.
- The notes are convertible into cash or MARA common stock at an initial conversion price of $34.58 per share, representing a 40% premium over the company’s recent trading price.
Strategic Capital Raise Sets Stage for Bitcoin Expansion
MARA Holdings, Inc. (NASDAQ: MARA), a prominent player in the digital asset infrastructure space, has announced the successful completion of an $850 million zero-coupon convertible senior notes offering. The company secured the funding through a private placement to qualified institutional buyers, with net proceeds amounting to approximately $835.1 million after initial purchasers’ discounts and commissions.
Bitcoin Acquisition Strategy Takes Center Stage
The majority of the raised capital is earmarked for bitcoin acquisition, marking a significant move to strengthen MARA’s position in the cryptocurrency market. The company has allocated approximately $48 million to repurchase existing convertible notes due 2026, with the remaining funds designated for bitcoin purchases and general corporate purposes, including potential strategic acquisitions and expansion of existing assets.
Flexible Conversion Terms Attract Institutional Interest
The newly issued notes, maturing in 2031, come with notable flexibility for investors. The conversion rate is set at 28.9159 shares of MARA’s common stock per $1,000 principal amount, with holders having the option to convert their notes into cash, MARA common stock, or a combination of both. The company has also included provisions for early redemption starting June 2029, subject to specific price conditions of MARA’s common stock.
This significant capital raise positions MARA to potentially become one of the larger institutional bitcoin holders while strengthening its balance sheet for future growth opportunities in the digital asset infrastructure sector.
