American Bitcoin miner Mara (formerly Marathon Digital) plans to raise $700 million to expand its Bitcoin holdings. The firm’s move shows its confidence in BTC’s long-term potential despite the asset’s recent price hike.
Mara to Purchase More BTC
The Bitcoin miner plans to raise the funds by offering equivalent convertible senior notes due 2030 in a private offering to qualified institutional buyers. The notes will be unsecured, senior obligations of Mara, bearing interest payable semi-annually and maturing on March 1, 2030.
The company may redeem the notes starting March 5, 2028, and holders can require repurchase on December 1, 2027. The firm assured that the notes would be convertible into cash, shares of the company’s stock, or a combination at Mara’s election. The interest rate, initial conversion rate, and other terms will be determined at pricing.
Mara expects to use up to $200 million of the proceeds to repurchase existing convertible notes due 2026. Holders will likely sell their hedged investments, buy Mara’s stock, and engage in derivatives. The company believes this activity could impact its stock price, including during the notes’ pricing. The remainder of the funds will be used to acquire additional bitcoins.
The American Miner reminded the public that the offering is subject to market conditions and that completion is not assured. It added that the notes and shares issuable upon conversion will not be registered under the Securities Act or other jurisdictions’ securities laws and may only be offered or sold within applicable exemptions.
Meanwhile, Mara’s current $700 million convertible senior notes offering is not the first time the company has utilized this market instrument to fund Bitcoin purchases. In August, the firm made a similar move for a $250 million offering, which was used to acquire additional BTC and cater to other general corporate purposes.
Institutions Bag More BTC
With its current price at $92,371 and a market capitalization of over 1.82 trillion, Bitcoin remains the most widely recognized crypto. Institutions are accumulating more Bitcoins, as public companies like MicroStrategy hold substantial Bitcoin portfolios.
Today, Metaplanet, a Japanese investment firm, announced its raise of $11.3 million to purchase additional bitcoins. MicroStrategy also publicized its acquisition of 51,780 BTC following last week’s purchase of 27,200 BTC worth over $2 billion.
