MARA Convertible Notes Offering Now Completed With $1 Billion Raised

Key Points:

• MARA Holdings finalized a $1 billion convertible senior notes issuance, including a $150 million option fully exercised on November 19, 2024.
• MARA convertible notes will be redeemed in 2026, and the remaining capital raised will be used for Bitcoin acquisitions, corporate needs, asset expansion, and debt repayment.

Bitcoin mining company MARA Holdings announced that it has completed a $1 billion issuance of convertible senior notes, with an additional $150 million in notes being purchased under an option exercised by the initial purchaser.

Read more: Marathon Digital Quarterly Losses Soar With 20,000 BTC In Balance

MARA Convertible Notes Offering Completed

The option provided for in the purchase agreement was fully exercised on November 19, 2024, settling on November 20, 2024.

The MARA convertible notes, due to mature on March 1, 2030, have semi-annual interest payments commencing on March 1, 2025. This would give MARA approximately $980 million in net proceeds after deducting discounts and commissions.

Of these proceeds, $199 million is intended to be used for the repurchase of all MARA convertible notes due 2026, bearing a total principal amount of $212 million. The remainder will be utilised for various uses including the purchase of additional Bitcoin, general corporate needs and possible strategic acquisitions. Working capital, asset expansion and debt repayment are some of the other usages.

MARA Aligns with Industry Leaders in Crypto Investment Strategy

The strategy puts MARA in step with recent trends from companies such as MicroStrategy and Japan-based Metaplanet, which have turned to debt instruments in recent months to finance Bitcoin acquisitions.

Three days ago, MARA announced a $700 million private offering for Bitcoin acquisition and debt refinancing. The company remains committed to holding all its mined Bitcoin and acquiring even more.