Mara Holdings, a prominent publicly traded crypto mining firm, has revealed its plans to raise up to $1 billion through the sale of zero-interest convertible senior notes. The move aims to bolster the company's financial standing and expand its Bitcoin holdings.
Of the $1 billion, $850 million will be offered to qualified institutional buyers, with the notes maturing in 2032. Furthermore, these buyers will have the option to purchase an additional $150 million in principal. The offering is subject to market conditions, and there is no guarantee that the deal will close.
A portion of the proceeds, up to $50 million, will be allocated to repurchase existing 1.00% convertible senior notes due in 2026. The remaining funds will cover the costs of capped call transactions, facilitate further Bitcoin acquisitions, and support general corporate purposes. The notes will be senior unsecured obligations of Mara and will not bear interest.
In a similar move back in November 2024, Mara Holdings completed a $1 billion issuance of zero-coupon convertible senior notes due March 1, 2030. The company planned to use most of the proceeds to acquire Bitcoin. Approximately $199 million, or 20% of the funds, was allocated to address upcoming debt obligations, with the remainder supporting strategic investments, operational growth, and Bitcoin purchases. The new notes carried an initial conversion price of approximately $25.91 per share, a 42.5% premium over the average trading price before the offering's pricing.
These coordinated efforts are structured to enhance financial flexibility while enabling strategic investments in cryptocurrency and operational efficiency.
Mara's strategy mirrors that of MicroStrategy, which has also increased its note sales to acquire more Bitcoin. This reflects a strong market confidence in Bitcoin's potential to reach $100,000.
The company's focus on Bitcoin acquisitions aligns with a positive outlook on the cryptocurrency's future. Mara currently holds 25,945 BTC, worth over $2.52 billion. The company also intends to repurchase $199 million of convertible notes due in 2026 to improve its financial structure.
