[MARA Holdings completes $1 billion bond issuance to acquire more Bitcoin]
MARA Holdings on Thursday announced the completion of a $1 billion zero-coupon convertible senior notes offering, with the majority of the proceeds to be used to purchase Bitcoin. The offering included an initial principal amount of US$850 million and an additional US$150 million, increasing the size from the original US$700 million to US$1 billion due to strong investor demand.
After deducting discounts and commissions, the net amount raised was US$980 million, of which approximately US$199 million will be used to repurchase convertible notes due in 2026, and the remaining funds will be invested in Bitcoin purchases and corporate purposes.
The note matures in 2030 and holders may elect to convert it into cash, shares of MARA common stock, or a combination of the two, at an initial conversion rate of 38.5902 shares per $1,000 of note, at a conversion price of approximately $25.9133 per share, an increase from 11 The average transaction price on March 18th was at a premium of 42.5%.
Note holders may request the company to repurchase the notes at par in December 2027 or upon a fundamental change. Beginning in 2028, MARA will have the option to redeem the notes if the stock price reaches 130% of the conversion price.
MARA adheres to the "HODL" policy, holding all mined Bitcoins and regularly increasing its holdings. The company currently holds approximately 27,562 BTC and has a market capitalization of approximately $2.6 billion, making it one of the largest publicly traded companies holding Bitcoin.