The largest publicly traded bitcoin miner, MARA Holdings, announced Thursday the successful closing of its $1 billion offering of 0% convertible senior notes due 2030. This includes a $150 million overallotment exercised in full by initial purchasers on Tuesday, with the additional purchase finalized on Wednesday.
MARA announced Monday its intention to offer $700 million of convertible senior notes in a private offering to qualified institutional buyers. Net proceeds from the sale totaled approximately $980 million after deducting fees but before expenses.
MARA, formerly Marathon Digital, plans to allocate around $199 million of the proceeds to repurchase $212 million in principal of its existing convertible notes due 2026. The remaining funds will be used to acquire more bitcoin and for general corporate purposes, including strategic acquisitions and debt repayment.
The notes were sold in a private offering to qualified institutional buyers under Rule 144A of the Securities Act of 1933. The move underscores MARA’s ongoing strategy to strengthen its financial position and expand its operations in the digital asset space, according to its press release.
MARA's stock (ticker MARA) was up 10% in Thursday's trading session. Shares have appreciated about 30% over the past month, as the price of bitcoin has surged following the election of pro-crypto President-elect Donald Trump.
The stock traded at $24.56 per share at publication time. MARA has a market cap nearing $8 billion, according to Yahoo Finance.
Earlier this month, MARA reported a third-quarter earnings miss. Sales for the quarter came in at $131.6 million, an improvement from its second quarter's net loss of $199.7 million.
As of Oct. 31, MARA holds 26,747 bitcoin on its balance sheet. During the third quarter, the company mined 2,070 BTC and purchased 6,210 BTC, of which 4,144 were acquired using proceeds from a $300 million offering of convertible senior notes at an average price of $59,500 per BTC.
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