TL;DR
MARA Holdings has completed a $1 billion debt offering with zero-interest convertible senior notes, maturing in 2030.
The company will allocate approximately $980 million of the raised funds to acquire more Bitcoin and repurchase 2026 convertible notes.
The issued notes have an initial conversion rate of $25.91 per share, and holders can require the repurchase of their notes in 2027 or after certain events.
MARA Holdings has successfully closed a $1 billion debt offering through zero-interest convertible senior notes maturing in 2030.
The offering, initially set at $700 million, was expanded to a total of $1 billion due to high investor demand. The company expects to net approximately $980 million after discounts and commissions, which will primarily be used for acquiring more Bitcoin.
MARA Continues Strengthening Its Treasury with Bitcoin
Of the raised funds, approximately $199 million will be allocated to repurchase $212 million of its existing 2026 convertible notes, while the remainder will be used to continue purchasing Bitcoin and for other general corporate purposes, including potential capital increases, strategic acquisitions, and the expansion of existing assets. As part of its treasury strategy, MARA continues its Bitcoin accumulation policy, holding all mined BTC and making regular purchases.
The issued notes offer an initial conversion rate of 38.5902 shares of the company per $1,000 face value, which represents a conversion price of approximately $25.91 per share, 42.5% higher than MARA’s average stock price in the market in mid-November 2024.
What Can Be Done With the Notes?
These notes, which do not bear regular interest, can be converted into cash, common shares of MARA, or a combination of both, at the company’s discretion. Noteholders have the option to require MARA to repurchase their notes on December 1, 2027, or after certain significant changes in the company.
Additionally, MARA has the option to redeem the notes at any time after March 5, 2028, if its stock price exceeds 130% of the conversion price for a specified period. Currently, the company is one of the largest corporate holders of Bitcoin, with approximately 27,562 BTC, valued at around $2.6 billion
