Mara Holdings plans to expand its Bitcoin stack by offering over $700 million in convertible senior notes.
Bitcoin BTC $95 116 24h volatility: 0.0% Market cap: $1.89 T Vol. 24h: $23.00 B mining company MARA Holdings Inc (NASDAQ: MARA) has unveiled plans for a $700 million private offering of 0% convertible senior notes, due in 2031. According to the press release, this offering is contingent upon market conditions and other relevant factors. The notes will be issued in a private placement, targeting institutional buyers who qualify under Rule 144A of the Securities Act.
Marathon Strategic Use of Funds: Balancing Growth and Stability
The United States-based company also plans to grant the initial purchasers an option to buy an additional $105 million in Convertible Notes.
As revealed, the debt offering will be MARA’s unsecured senior obligations and are not expected to bear interest. Depending on the company’s choice, they will be converted into cash, MARA common stock, or both.
Notably, $50 million from the net proceeds of this offering will likely be used for general corporate purposes. This will include acquiring additional Bitcoin, making capital expenditures, or investing in growth opportunities.
Furthermore, the company plans to use part of the funds to repurchase its 2026 convertible notes. Thus, MARA investors will benefit from potential equity appreciation while optimizing the company’s capital structure.
Today, we announced a proposed private offering of 0% convertible notes of $700 million + $105 million option. Proceeds to be used primarily to acquire bitcoin and repurchase existing 2026 convertible notes up to $50 million.https://t.co/S9kgfId4rp
— MARA (@MARAHoldings) December 2, 2024
The strategic move will also improve the company’s overall financial health. Meanwhile, these investments align with MARA’s long-term strategy to scale operations and benefit from Bitcoin’s rising value. The company’s decision comes at a time of heightened interest and optimism surrounding Bitcoin and digital assets.
Companies like MicroStrategy and Core Scientific have used convertible senior notes, similar to MARA, to raise capital without diluting shareholders’ stakes. Intriguingly, these notes fund expansion, acquisitions, and investments, attracting strategic investors while maintaining financial flexibility.
Marathon Digital Bitcoin Accumulation
A few days ago, the Bitcoin mining giant purchased 703 Bitcoin through its latest $1 billion convertible note at a 0% interest rate.
With this, its total Bitcoin purchases have reached 6,474 BTC. As reported by Coinspeaker, Mara Holdings recently purchased 703 BTC at an average price of $95,395 per coin. This comes following the company’s initial purchase of 5,771 BTC earlier.
As such, Mara Holdings has reported a 36.7% yield on its BTC purchases since the beginning of 2024. In addition to its purchases, MARA adds Bitcoin units to its Treasury through its mining operations. The Bitcoin miner holds 34,797 BTC in its treasury, worth $3.3 billion.
Moreover, the company added over 5,000 Bitcoin units in August, making it the second-largest public holder of BTC after MicroStrategy. That same August, MARA acquired 4,144 BTC, bringing its reserves to over 25,000 BTC. Marathon’s endless Bitcoin buying accounted for nearly 0.12% of Bitcoin’s total circulating supply.
Mara Holdings’ long-term strategy yields good results, as Bitcoin’s value shows resilience and upward momentum.
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