Key Points
- MARA Holdings, a Bitcoin miner, has finalized an $850 million debt offering through a private issuance of zero-coupon convertible senior notes due 2031.
- The company plans to use the proceeds for repurchasing convertible notes, Bitcoin acquisitions, and general corporate purposes.
MARA Holdings, a prominent Bitcoin miner, recently announced the successful completion of an $850 million debt offering. This was achieved through a private issuance of zero-coupon convertible senior notes due in 2031.
The announcement, made on December 4, revealed that the firm secured approximately $835.1 million in net proceeds after deducting initial purchasers’ discounts and commissions. The offering comprised $850 million of zero-coupon convertible senior notes due in 2031, with an additional $150 million option granted to initial purchasers.
Terms of the Offering
The notes, which do not feature regular interest or principal accretion, can be converted into cash, MARA common stock, or a combination of both at the company’s discretion. The initial conversion rate was set at 28.9159 shares per $1,000 principal, equivalent to a conversion price of $34.58 per share, a 40% premium over recent trading prices. The notes also include optional redemption rights beginning June 5, 2029, and repurchase options for holders in 2027 and 2029, subject to specific conditions.
MARA plans to use $48 million of the proceeds to repurchase $51 million of its 2026 convertible notes. The remainder will be allocated for Bitcoin acquisitions and general corporate purposes.
MARA Holdings’ Current Bitcoin Holdings
As of a December 2 filing, the firm holds a total of 34,959 BTC, valued at $3.59 billion based on current prices. Previously known as Marathon Digital, MARA Holdings is the largest publicly traded crypto mining company by market capitalization and the second-largest corporate Bitcoin holder, trailing only MicroStrategy.
The company’s stock saw an increase of 3.3% on the day, closing at $25.96—a five-month high—following the completion of its latest debt offering.
On December 3, MARA disclosed that it was in negotiations to acquire a wind farm in Hansford County, Texas. The farm has 240 megawatts of interconnection capacity and 114 megawatts of operational wind generation. The goal is to power its sustainable Bitcoin mining data center and establish a vertically integrated operation with zero-marginal energy costs.
MARA has also been advocating for the creation of a strategic Bitcoin reserve in the United States. The company issued an open letter urging regulators to take proactive steps to maintain the country’s leadership in the evolving global financial system.