MARA Completes $1 Billion Convertible Note Sale to Fund Bitcoin Acquisition

MARA Holdings announced it had completed a $1 billion sale of 0% convertible senior notes on Thursday to finance Bitcoin acquisitions and other strategic goals, including debt repurchases.

This undertaking incorporates key provisions for managing debt and operational finances more effectively.

MARA Convertible Note Sale Secures $1 Billion in Funding

According to a press release from MARA, the $1 billion sale included an additional $150 million raised through an option exercised by the initial purchasers, resulting in net proceeds of approximately $980 million after deductions.

$1 Billion. 0% interest.

MARA has completed the largest convertible notes offering ever amongst BTC miners.

The mission, as always: Provide value. Acquire #bitcoin. pic.twitter.com/BIFckTaial

— MARA (@MARAHoldings) November 21, 2024

MARA intends to use $212 million of these proceeds to repurchase its existing convertible notes due 2026, which were acquired through privately negotiated transactions.

The remainder will fund Bitcoin acquisitions and other operational expenses, further advancing MARA’s financial strategy.

The senior unsecured notes, which mature in 2030, do not carry regular interest but provide special interest provisions under specific conditions outlined in the indenture agreement.

MARA retains the option to redeem the notes for cash starting in 2028, provided its stock price exceeds 130% of the conversion price for a sustained period.

Additionally, holders of the notes can convert them into cash, stock, or a combination of both, depending on the company’s election.

The conversion price of approximately $25.91 per share represents a 42.5% premium over MARA’s current stock price.

However, the notes and shares linked to the offering are not registered under U.S. securities laws and can only be traded under appropriate exemptions.

MARA Convertible Notes: $700 Million Directed Toward Bitcoin and Debt

Earlier this week, MARA Holdings disclosed a separate $700 million private offering of convertible senior notes, also maturing in 2030, with similar objectives.

💰 @MARAHoldings announces a $700 million convertible notes offering primarily aimed at acquiring additional #Bitcoin and repurchasing debt.#CryptoFinance #ConvertibleNoteshttps://t.co/VAZvt8PdiU

— Cryptonews.com (@cryptonews) November 18, 2024

The proceeds from this issuance are allocated as follows: $200 million for repurchasing existing 2026 convertible notes in privately negotiated transactions, while the remaining $500 million will support Bitcoin acquisitions and other operational needs.

Unlike the newly issued notes, these will begin accruing semi-annual interest starting in March 2025.

MARA also holds the option to redeem them beginning in 2028 and will permit conversions into cash, stock, or both before the maturity date.

With these coordinated efforts, MARA’s convertible note sales are structured to enhance financial flexibility while enabling strategic investments in cryptocurrency and operational efficiency.