07:00 AM EST, 12/03/2024 (MT Newswires) -- MARA (MARA) said late Monday it has priced its offering of $850 million aggregate principal amount of 0.00% convertible senior notes due 2031 to qualified institutional buyers under Rule 144A of the Securities Act.

MARA also granted the initial buyers an option to purchase up to an additional $150 million aggregate principal amount of the notes a 13-day period from the day notes are first issued.

The notes, which are unsecured, senior obligations, will not bear regular interest and are set to mature on June 1, 2031, unless repurchased, redeemed, or converted earlier.

The notes will be convertible into cash, shares of the company's common stock, or a combination of both. The initial conversion rate is 28.9159 shares per $1,000 principal amount of notes, equating to a conversion price of around $34.58 per share.

MARA said it plans to use around $48 million of the net proceeds to buy back its $51 million of its existing 2026 convertible notes in privately negotiated transactions and the remainder for buying additional bitcoin (BTC) and general corporate purposes, including working capital, acquisitions, and debt repayment.

The offering is expected to close on Dec. 4.