MARA Holdings announced a $700 million private offering of convertible senior notes maturing in 2030. Qualified institutional buyers can purchase the notes, with an option to acquire an additional $105 million. Proceeds will fund Bitcoin accumulation, corporate expansion, strategic acquisitions, and debt repayment.
MARA To Raise $700M Through Convertible Notes Offering for BTC Purchase and Growth
MARA Holdings intends to offer $700 million aggregate principal amount of its convertible senior notes due 2030 in a private offering. The holdings notes are expected to be offered and sold only to qualified institutional buyers. Purchasers will have an option to buy an additional $105 million in notes.
This is really bold suggestion especially after Peter Schiff, a staunch Bitcoin skeptic, provocatively and sarcastically suggested selling Social Security’s $2.7 trillion in US Treasuries to buy Bitcoin, claiming it could solve its funding crisis.
The Bitcoin mining firm would utilize up to $200 million of the proceeds to repurchase some of its outstanding 2026 convertible notes. They will use the remainder to accumulate Bitcoin and support corporate purposes, including expansion, acquisitions, and debt servicing.
Bitcoin mining nowadays, has become increasingly lucrative, as miners strategically pause operations or sell holdings to optimize profitability during each cycle while they’re waiting for a $100K.
The convertible notes, due by 2030, can be converted into cash or stocks at MARA’s discretion. Interest will be payable semi-annually, though all details have yet to be agreed upon.
Can MARA Replicate Metaplanet’s Success?
The news did not sit well with the market, with MARA shares down 5% to $19.97 in premarket trades.
The offering aligns with recent debt-based Bitcoin buying strategies implemented by MicroStrategy and Metaplanet of Japan. MARA remains adherent to MicroStrategy’s “HODL” philosophy, which involves holding all the mined Bitcoins and staying in the market to buy more. Just for example, Japanese firm Metaplanet adopted a Bitcoin acquisition strategy similar to MicroStrategy’s, leading to significant growth in its BTC yield.
This approach has nearly doubled Metaplanet’s valuation since the start of the year. MicroStrategy’s stock soared 2,200% after adding Bitcoin in 2020; Metaplanet could see similar gains by continuing accumulation.
Per Bitcoin Treasuries, Marathon Digital holds the top spot among publicly listed mining companies in Bitcoin holdings at 27,562 BTC. That places Marathon Digital among the leading Bitcoin owners in the industry, right after MicroStrategy.
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