MARA Holdings, Inc., a premier digital asset and blockchain computing company, announced plans to offer $805 million of convertible senior notes due 2031. The company is expanding its Bitcoin holdings and clearing existing debt, an indicator of its conviction in the blockchain market.
The offering includes $700 million of convertible senior notes, which the initial purchasers may increase to $105 million. Proceeds will be utilized for debt reduction and Bitcoin acquisitions on a general corporate basis. In that regard, MARA aims to use up to $199 million to repurchase some of its outstanding convertible notes due 2026 and all funds to beef up its Bitcoin reserves and support operational growth.
Today, we announced a proposed private offering of 0% convertible notes of $700 million + $105 million option. Proceeds to be used primarily to acquire bitcoin and repurchase existing 2026 convertible notes up to $50 million.https://t.co/S9kgfId4rp
— MARA (@MARAHoldings) December 2, 2024
Under normal circumstances, the notes will be unsecured and without interest, MARA said. The notes will mature June 2031, or at any time at maturity, at MARA’s option, in which case the notes will be convertible into cash, MARA common stock, or a combination thereof.
MARA Holdings To Raise $805M for Bitcoin And Debt Reduction
The announcement arrives at a pivotal point for the cryptocurrency industry, where a favorable Washington regulatory and political environment has helped the market. Electing pro-crypto President Donald Trump and a Republican-controlled congress has boosted the digital asset ecosystem.
The new administration could also spur cryptocurrency regulation more quickly, especially in market structure and stablecoin frameworks, according to industry experts, including Coinbase’s Chief Policy Officer Faryar Shirzad.
Under a pro-crypto Trump administration, Jim Cramer did not rule out Bitcoin’s value growth. In a new interview with Cramer, the CNBC host pointed to the possibility of Trump’s policies propelling Bitcoin hoarding into ‘core asset class’ territory for the crypto’s benefit. Cramer also mentioned that Trump’s push to boost U.S. oil production could help smaller oil service stocks and go hand in hand with his pro-business, pro-crypto agenda.
The increasing institutional appetite for cryptocurrency exposure is displayed in MARA’s latest fundraising efforts. With digital assets still attractive to institutional investors, others like MARA prepare to be fundamental players in the booming crypto ecosystem. The issuance of these convertible notes is MARA’s commitment to growing its Bitcoin reserves as the market changes.
The company has already taken some leaps forward in recognizing its Bitcoin holding strength. On 29 November, MARA bought another 703 BTC to its portfolio, which now comprises 34,794 BTC, totaling around $3.3 billion. MARA seals its position as one of the largest corporate Bitcoin holders after it, coming in second only to MicroStrategy, which holds 1.8 percent of Bitcoin’s total supply to the company’s 0.16 percent.
MARA’s strategic approach to investing in cryptocurrency is consistent with the market’s state. As institutional interest continues to grow and regulatory support remains in place, the digital asset ecosystem matures, and MARA is positioned to reap the immediate benefits of this development.
MARA Holdings believes in the long-term potential of Bitcoin and blockchain technology and has not wavered in its inclination to stay in the digital assets market.
