MARA Holdings upsizes note offering to $850 million to buy more Bitcoin

The notes will not pay regular interest payments to the bondholders.

Key Takeaways

• Marathon Digital Holdings has upsized its convertible senior notes offering to $850 million for Bitcoin acquisitions.
• Marathon is the second-largest corporate Bitcoin holder with 34,794 BTC, valued at $3.3 billion.

MARA Holdings (MARA), Wall Street’s largest publicly traded Bitcoin miner, has increased its convertible senior notes offering to $850 million from $700 million, with plans to use part of the net proceeds for future Bitcoin acquisitions, according to a Dec. 2 statement.

The zero-interest notes, maturing in 2031, are convertible into cash, common stock shares, or a combination of both at the company’s discretion.

The Bitcoin mining company expects to generate approximately $835 million in net proceeds from the offering, with potential to reach $982 million if additional notes are fully purchased.

MARA plans to allocate $48 million of the proceeds to repurchase about $51 million of existing convertible notes due in 2026.

The bulk of the remaining net proceeds from the sale of the notes will be directed towards acquiring additional Bitcoin. These funds will also be used to support various corporate initiatives, such as strategic acquisitions.

The company recently acquired 703 Bitcoin in November, bringing its monthly total purchases to 6,474 BTC, after raising $1 billion through a previous zero-interest convertible senior note sale. Marathon also set aside $160 million to buy the dip.

MARA now holds 34,794 Bitcoin valued at $3.3 billion, reinforcing its position as the second-largest corporate Bitcoin holder behind MicroStrategy, which recently purchased $1.5 billion worth of Bitcoin.

Source: Bitcoin Treasuries

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