Mara Holdings (formerly Marathon Digital), a crypto mining and blockchain technology firm, has completed a $1 billion offering of 0% convertible senior notes due in 2030. The firm plans to use the proceeds for strategic investments, operational growth, and buying more BTC.
Mara Holdings noted that the total principal value of the notes issued during the offering reached $1 billion, incorporating $150 million in notes issued through an exercised purchase option.
The company further stated that the notes would be offered to persons reasonably believed to qualify as institutional buyers under Rule 144A of the Securities Act. Mara Holdings also noted that it will give a 13-day window starting from the date the notes were initially issued to the original buyers under the terms of the purchase agreement. The buyers fully utilized this option on November 19, 2024, with the additional transaction finalized on November 20, 2024.
Mara to Purchase Additional BTC
The increase in the note offering indicates growing institutional confidence in BTC as the crypto asset reached a new high. The digital asset is currently trading at above $97,400, up 3.82% in the last 24 hours.
Mara plans to allocate approximately $199 million of the net proceeds from the note offering to buy back $212 million in total principal value of its outstanding convertible notes maturing in 2026.
The notes will not accrue regular interest, and their principal value will remain unchanged. The company said it will retain the option to pay special interest, if applicable, as the exclusive remedy for non-compliance with its reporting obligations or under specific conditions outlined in the indenture. Any special interest, if applicable, will be disbursed semi-annually in arrears.
Noteholders have the right to demand that MARA repurchase all or part of their notes for cash either on December 1, 2027 or if specific events occur that qualify as a fundamental change under the terms of the indenture. The repurchase price will equal 100% of the notes’ principal value, along with any accrued and unpaid special interest up to, but not including, the repurchase date.
Institutions to Secure More BTC
The announcement comes after leading business intelligence company MicroStrategy plans to raise $2.6 billion from senior convertible notes at a 0% interest rate to acquire more BTC. The note sale was increased from the initially announced offering of $1.75 billion in aggregate principal amount of notes.
Starting December 4, 2026, and contingent upon specific conditions, MicroStrategy can repurchase some or all of the notes for cash at a price equivalent to 100% of their principal value, along with any accumulated and unpaid special interest.
