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MARA Closes $850M Convertible Note Offering to Boost Bitcoin Holdings
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MARA Closes $850M Convertible Note Offering to Boost Bitcoin Holdings
Dec 5, 2024 2:42 PM

MARA Holdings, Wall Street’s largest publicly traded Bitcoin miner, has successfully closed a second $850 million offering of convertible senior notes.

The company made the announcement on December 5 via an X post, outlining that the primary use of the proceeds will be to acquire additional Bitcoin and repurchase some of its outstanding convertible notes due in 2026.

MARA’s Latest Convertible Notes Offering

In an accompanying press release, MARA confirmed that the notes will be issued with no interest, except in rare cases where special interest may apply with the principal amount expected to remain unchanged.

The notes are set to mature in 2031 and are convertible at the companys discretion into cash, common stock shares, or a combination of both.

The Bitcoin miner projects that the net proceeds from this offering will amount to approximately $835 million, with the potential to increase to $985 million should additional notes be fully purchased.

The company plans to allocate roughly $48 million of these proceeds to repurchase approximately $51 million of its existing convertible notes, which are due in 2026.

The remaining returns will be used for acquiring more Bitcoin and for general corporate purposes, including working capital, strategic acquisitions, expansion of assets, and debt repayment.

Previous Offerings and Purchases

This move follows MARA’s previous $700 million zero-interest convertible senior notes offering due in 2030. The company also recently acquired 703 BTC in November after earlier buying 5,771 BTC, which brought its total monthly acquisitions to 6,474 BTC.

The purchase was made after a previous zero-interest convertible senior note sale that raised $1 billion. At the time, the mining company also revealed it has approximately $160 million in remaining funds, which it plans to use for future Bitcoin buys during price dips.

As of the latest update, BitcoinTreasuries shows that MARA now holds a total of 34,794 BTC, valued at approximately $3.3 billion. This positions the company as the second-largest corporate holder of the cryptocurrency, behind only MicroStrategy, which recently announced a purchase of $1.5 billion worth of Bitcoin.

The market has responded positively to the firm’s latest moves. Google Finance data shows that on December 5, the company’s stock closed up 3.30%, reaching $25.96.

Additionally, over the past month, MARA’s stock price has surged by 59.85%, and its year-to-date growth stands at 13.2%.

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