MARA Holdings, a leading publicly traded Bitcoin mining company, has announced plans to raise $850 million through a private sale of 0% convertible senior notes due in 2032. This significant capital move aims to expand its Bitcoin holdings, strengthen its balance sheet, and support infrastructure growth.
MARA Plans to Repurchase 2026 Notes and Reduce Debt
According to a filing with the U.S. Securities and Exchange Commission (SEC), MARA will use up to $50 million of the proceeds to repurchase its existing 1% convertible notes maturing in 2026.
This move is designed to reduce short-term liabilities and improve MARA’s financial flexibility over the next few years.
The new offering, which will be available to qualified institutional buyers only, also includes an option to raise an additional $150 million, potentially bringing the total proceeds to $1 billion.
Funds Targeted for Bitcoin Accumulation and Expansion
The majority of the raised capital will be directed toward purchasing more Bitcoin, as well as supporting general operations, infrastructure development, and strategic acquisitions.
This aggressive approach reflects MARA’s ongoing commitment to increasing its exposure to digital assets, particularly as institutional demand for Bitcoin continues to rise.
A portion of the funds will also be used for “capped call transactions”—a type of hedge that minimizes dilution risk if the notes are converted into company stock.
MARA Strengthens Position as Second-Largest Bitcoin Holder
MARA currently holds 50,000 BTC worth over $5.9 billion, based on recent spot prices. This cements its role as the second-largest Bitcoin holder among publicly traded companies, trailing only MicroStrategy.
The latest capital strategy will likely bolster MARA’s balance sheet and long-term asset reserves, further enhancing its credibility among institutional investors.
Shares of MARA were trading at $19.05, down more than 4% in pre-market activity, potentially due to investor concerns over stock dilution or macro uncertainty.
Convertible Notes Offer Flexibility and Strategic Leverage
The 0% convertible notes due in 2032 provide investors with the flexibility to convert into cash, stock, or a combination of both. Meanwhile, MARA retains the right to redeem these notes starting in 2030, subject to performance thresholds.
By combining capital efficiency, Bitcoin strategy, and balance sheet optimization, MARA is signaling its ambition to remain a leader in the evolving crypto mining landscape.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.