MARA Holdings plans a $700M private offering with 0% convertible notes, focusing on Bitcoin acquisition and financial flexibility.
The mining giant added 703 BTC to its reserves, achieving a 36.7% yield on Bitcoin investments in 2024.
MARA’s Bitcoin holdings total 34,797 BTC, solidifying its position as the second-largest public holder after MicroStrategy.
MARA Holdings a prominent Bitcoin mining company, announced plans to raise $700 million through a private offering of 0% convertible senior notes. The notes, due in 2031, are set to be offered under Rule 144A of the Securities Act, targeting qualified institutional buyers. This funding initiative is conditional on prevailing market conditions and other critical factors, as stated in the company’s press release.
https://twitter.com/MARAHoldings/status/1863550691781779689
Additional Offering Opportunity for Investors
MARA intends to provide initial purchasers an option to acquire an additional $105 million in convertible notes. These notes, issued as unsecured senior obligations, will carry no interest and can be converted into cash, common stock, or a combination of both, depending on the company’s discretion.
The company has outlined a clear strategy for utilizing the funds raised. Around $50 million will support general corporate needs, including acquiring more Bitcoin, capital expenditures, and seizing new growth opportunities. MARA also plans to allocate a portion of the proceeds to repurchase its 2026 convertible notes, which will enhance its financial flexibility.
Strengthening Financial Health and Bitcoin Holdings
This move aligns with MARA’s broader strategy to optimize its capital structure while expanding its Bitcoin reserves. Currently, the company is the second-largest public holder of Bitcoin, boasting a treasury of 34,797 BTC, valued at $3.3 billion.
Recently, MARA added 703 Bitcoin to its reserves through a $1 billion convertible note offering, purchasing the cryptocurrency at an average price of $95,395 per coin. This follows a significant acquisition of 5,771 BTC earlier this year, bringing its 2024 Bitcoin purchases to 6,474 BTC.
Scaling Operations Amid Bitcoin Momentum
MARA’s commitment to Bitcoin extends beyond acquisitions. The firm has also bolstered its reserves through mining operations, reporting a yield of 36.7% on its BTC investments since the start of 2024. In August alone, MARA acquired over 5,000 Bitcoin units, accounting for approximately 0.12% of Bitcoin’s circulating supply.
MARA’s strategic financial maneuvers, including leveraging convertible notes, aim to attract investors while maintaining shareholder value. These efforts position the company for sustained growth, benefiting from the cryptocurrency’s upward trajectory and increasing market interest in digital assets.
