MARA Completes $850M Debt Offering, Plans Bitcoin Expansion
MARA Holdings, formerly Marathon Digital, has closed an $850 million debt offering, garnering net proceeds of $835.1 million after deducting discounts and commissions. The funds will be used to ramp up Bitcoin acquisitions, repay outstanding debt, and finance corporate initiatives that would lead to long-term growth.
The debt offering consisted of zero-coupon convertible senior notes due 2031.
Structure of Convertible Notes
The debt offering consisted of zero-coupon convertible senior notes due 2031. These notes include:
- $850 million in principal with a $150 million overallotment option.
- No regular interest or principal accretion.
- Conversion options into cash, MARA stock, or both, at the company’s discretion.
The conversion rate is set at 28.9159 shares per $1,000 principal, translating to a $34.58 per share conversion price, 40% above current trading levels. The notes also provide redemption rights starting June 2029 and optional repurchase opportunities in 2027 and 2029.
Allocation of Proceeds
MARA intends to use $48 million toward retiring $51 million worth of its 2026 convertible notes to decrease liabilities further. The rest of its funds would be utilized to buy more Bitcoin as well as ensure general corporate purposes. As of Dec 2, MARA holds approximately 34,959 BTC worth up to $3.59 billion. This reiterates its position as the world’s second-largest corporate BTC holder after MicroStrategy.
Stock Performance and Strategic Growth
Following the announcement of its debt offering, MARA stock rose 3.3% to $25.96, marking a five-month high for the stock. The increase testifies to investor confidence in the company’s strategic vision, including the push for sustainable Bitcoin mining.
Renewable Energy Mining Expansion
This group is in advanced discussions to purchase a wind farm in Hansford County, Texas. The site features 240 MW of interconnection capacity and 114 MW of operational wind generation. This acquisition aligns with MARA’s goal of creating a vertically integrated Bitcoin mining operation powered by renewable energy, achieving zero-marginal energy costs.
Advocacy for U.S. Bitcoin Reserve
MARA Institute continues to advocate for establishing a U.S. Strategic Bitcoin Reserve, which she said is paramount for preserving America’s global financial leadership. As of Wednesday, the company released an open letter to regulators in higher echelons, begging them to adopt proactive moves to protect the country’s supremacy over the shifting crypto landscape.
Backed by financial innovation and sustainable methods, MARA is turning out to be one of the leading Bitcoin miners and contributors in the global crypto economy.
