MARA Holdings Inc Plans $700 Million Private Offering for Bitcoin Acquisition
Bitcoin (BTC) mining company MARA Holdings Inc (NASDAQ: MARA) plans a $700 million private offering of 0% convertible senior notes, due in 2031. This offering depends on market conditions and targets institutional buyers under Rule 144A of the Securities Act.
Marathon Strategic Use of Funds: Balancing Growth and Stability
The company will offer initial purchasers an option to buy an additional $105 million in Convertible Notes. The debt offering will be unsecured senior obligations with no expected interest. They may convert into cash, MARA common stock, or both. Of the net proceeds, $50 million is designated for general corporate purposes, including acquiring Bitcoin and capital expenditures.
MARA also intends to use part of the funds to repurchase its 2026 convertible notes, benefiting investors through potential equity appreciation while optimizing capital structure.
Today, we announced a proposed private offering of 0% convertible notes of $700 million + $105 million option. Proceeds to be used primarily to acquire bitcoin and repurchase existing 2026 convertible notes up to $50 million.https://t.co/S9kgfId4rp
— MARA (@MARAHoldings) December 2, 2024
This strategic move aims to improve financial health and aligns with MARA’s long-term strategy to scale operations amid rising Bitcoin value. Similar companies, like MicroStrategy and Core Scientific, have utilized convertible senior notes to raise capital without diluting shareholder stakes.
Marathon Digital Bitcoin Accumulation
Recently, Marathon purchased 703 Bitcoin through a $1 billion convertible note at a 0% interest rate, totaling its acquisitions to 6,474 BTC. MARA's latest purchase occurred at an average price of $95,395 per coin, following an earlier acquisition of 5,771 BTC.
MARA reported a 36.7% yield on its Bitcoin purchases since early 2024. The company also adds Bitcoin to its Treasury through mining operations, holding 34,797 BTC valued at $3.3 billion. In August, it added over 5,000 Bitcoin units, making it the second-largest public holder of BTC after MicroStrategy and bringing its reserves beyond 25,000 BTC. Marathon's continuous purchasing represents nearly 0.12% of Bitcoin's total circulating supply.
MARA's long-term strategy continues to yield positive results as Bitcoin maintains resilience and upward momentum.