According to news from Deep Tide TechFlow on December 3rd, MARA Holdings, Inc., a Bitcoin mining company, announced an increase in the total principal amount of its 0.00% convertible preferred notes due in 2031 to $850 million (previously announced as $700 million). MARA also granted initial purchasers of the notes an option to purchase additional notes with a total principal amount of up to $150 million within 13 days from the date of the initial issuance of the notes (including that day). The issuance is expected to be completed on December 4, 2024, subject to customary closing conditions. MARA estimates that the net proceeds from the sale of the notes, after deducting initial purchasers' discounts and commissions, but excluding estimated issuance costs payable by MARA, will be approximately $835.1 million (or approximately $982.5 million if the initial purchasers fully exercise their option to purchase additional notes).
MARA expects to use approximately $48 million of the net proceeds from the sale of the notes to repurchase its existing convertible notes due in 2026 with a total principal amount of approximately $51 million through privately negotiated transactions, with the remaining net proceeds to be used for purchasing more Bitcoin and for general corporate purposes, which may include working capital, strategic acquisitions, existing asset expansion, and repaying additional debt and other outstanding obligations.
