MARA Holdings Expands Convertible Notes Offering to $850M, Aims to Boost Bitcoin Holdings and Address Debt
MARA Holdings (NASDAQ: MARA), a leader among publicly traded bitcoin holders, has announced an increase in its convertible note offering from $700 million to $850 million, highlighting its commitment to growing its cryptocurrency reserves and addressing existing liabilities.
The offering, directed at qualified institutional buyers, also raises the additional purchase option to $150 million from $105 million. Set to close on Nov. 20, the notes mature on March 1, 2030, and will not accrue regular interest. Investors will have the flexibility to convert the notes into cash, MARA stock, or a combination thereof, based on the company’s discretion.
The initial conversion price of $25.91 per share represents a 42.5% premium over MARA’s stock price of $18.18. The offering is expected to yield net proceeds of approximately $833 million.
Of the funds raised, $199 million will be used to repurchase $212 million of MARA’s 2026 convertible notes. The remaining proceeds are allocated for strategic bitcoin acquisitions, operational expansions, and general corporate purposes.
Currently holding 27,562 BTC, MARA solidifies its position as the second-largest corporate bitcoin holder. The move aligns with broader industry trends, as peers like MicroStrategy (MSTR) and Semler Scientific (SMLR) recently made notable bitcoin purchases.
Following the announcement, MARA shares rebounded nearly 2% in pre-market trading, partially recovering from a 14% dip on Monday, as investors welcomed the company’s forward-looking strategy to capitalize on bitcoin’s rising prominence.
