MARA Holdings Increases Convertible Note Offering to $850 Million for Bitcoin Expansion
To expand its Bitcoin portfolio, MARA Holdings (formerly Marathon Digital Holdings Inc.), the largest publicly traded Bitcoin miner, announced on December 2 an increase in its convertible senior notes offering from $700 million to $850 million. The company stated that part of the net proceeds would be allocated to acquiring more Bitcoin and supporting strategic initiatives.
MARA Seeks to Build a Robust Bitcoin Portfolio
MARA’s X account reiterated the announcement with enthusiasm:
MARA Holdings, Inc. Announces Pricing of Oversubscribed and Upsized Offering of Zero-Coupon Convertible Senior Notes due 2031https://t.co/3PYqjzn2A7
— MARA (@MARAHoldings) December 3, 2024
This reflects the company's confidence in Bitcoin's long-term value amid market competition.
The offering consists of zero-coupon convertible senior notes maturing in 2031, which can convert into cash, common stock, or both at the company’s discretion. MARA anticipates net proceeds of at least $835 million, potentially rising to $982 million if additional notes are fully subscribed. A portion, around $48 million, will be used to repurchase $51 million of convertible notes due in 2026, while the majority will finance further Bitcoin acquisitions and other corporate initiatives.
Firm Eyes Crypto Sector Influence
MARA has aggressively pursued Bitcoin acquisitions, adding 703 BTC in November to reach a total of 6,474 BTC for that month. This followed a $1 billion zero-coupon note sale earlier in the year, during which the firm invested $160 million to capitalize on price dips.
As of now, MARA holds 34,794 Bitcoin, valued at $3.3 billion, making it the second-largest corporate Bitcoin holder after MicroStrategy, which holds $1.5 billion worth of Bitcoin.
The motivations behind MARA's acquisitions could include profit generation or a focus on Bitcoin's long-term value as a hedge against inflation. The upsized offering is expected to enhance MARA’s influence in the crypto sector by minimizing immediate financial strain through convertible debt instruments while securing resources for sustainable growth, solidifying its position in Bitcoin mining.