MARA Holdings, one of the largest corporate holders of Bitcoin, has successfully raised $950 million through an upsized offering of zero-interest convertible senior notes, according to a press release from the platform.
Following Rule 144A under the Securities Act of 1933, MARA Holdings sold the notes in a private offering to qualified institutional buyers, who were permitted to purchase up to an additional $200 million aggregate principal amount of the notes within 13 days, primarily the lead investors.
$950 Million in Convertible Senior Notes
MARA Holdings previously completed a $950 million offering of convertible senior notes due in 2031. The latest offer is a substantial increase from their previous $850 million.
The $950 million senior notes are scheduled to be due on August 1, 2032, unless they’re repurchased, redeemed, or converted before this date as per their terms. Based on the design of the notes, investors can convert them into cash, MARA’s common stock, or a combination of both at the company’s discretion.
Before May 1, 2032, the conversion of the notes into shares would depend on specific events or periods, such as a significant increase in the stock price. However, after that date, investors are allowed to convert at any time before the close of business on the second scheduled trading day preceding the scheduled maturity date.
MARA Holdings to Fund Further Bitcoin Acquisition
According to the company’s announcement, the net proceeds from the sale, after deducting fees for initial purchasers, including discounts and commissions, are expected to be about $940.5 million.
MARA plans to use a majority of the net proceeds to purchase additional BTC. In contrast, the remaining proceeds will be allocated for general corporate purposes, including capped call transactions, working capital, strategic investments, capital enhancement, expansion of existing assets, and repayment of additional debt and other outstanding obligations.
As the largest Bitcoin mining platform, MARA Holdings currently holds approximately 50,000 BTC, valued at around $6 billion, based on current market prices. With the funds from its convertible notes, the company plans to buy more BTC.
To further solidify its position as a major player in the cryptocurrency space, MARA has made significant strides in expanding its Bitcoin portfolio through several strategic acquisitions. Its most recent purchase of 713 BTC extended its total holdings to 49,940 BTC.
