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Home»DeFi»MARA completes $850m debt offering, plans to buy more Bitcoin
DeFi

MARA completes $850m debt offering, plans to buy more Bitcoin

December 5, 2024No Comments2 Mins Read
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Bitcoin miner MARA Holdings has recently completed an $850 million debt offering through a private issuance of zero-coupon convertible senior notes due 2031. This announcement, made on Dec. 4, revealed that the firm has secured approximately $835.1 million in net proceeds after deducting initial purchasers’ discounts and commissions.

The offering involved $850 million of zero-coupon convertible senior notes due 2031, with an additional $150 million option granted to initial purchasers. These notes do not feature regular interest or principal accretion and are convertible into cash, MARA common stock, or a combination of both at the company’s discretion.

The initial conversion rate for the notes is set at 28.9159 shares per $1,000 principal, equivalent to a conversion price of $34.58 per share, which represents a 40% premium over recent trading prices. The notes also include optional redemption rights beginning June 5, 2029, and repurchase options for holders in 2027 and 2029, subject to specific conditions.

MARA plans to allocate $48 million of the proceeds to repurchase $51 million of its 2026 convertible notes, with the remainder intended for Bitcoin acquisitions and general corporate purposes.

In a filing on Dec. 2, the company disclosed that it currently holds a total of 34,959 BTC valued at $3.59 billion based on current prices. Formerly known as Marathon Digital, MARA Holdings remains the largest publicly traded crypto mining company by market capitalization and the second-largest corporate Bitcoin holder, trailing only MicroStrategy.

Following the completion of its latest debt offering, the company’s stock rose 3.3% on the day, closing at $25.96—a five-month high. Additionally, on Dec. 3, MARA announced its plans to acquire a wind farm in Hansford County, Texas, with 240 megawatts of interconnection capacity and 114 megawatts of operational wind generation. This acquisition aims to power the company’s sustainable Bitcoin mining data center and establish a vertically integrated operation with zero-marginal energy costs.

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MARA has also been vocal in advocating for the creation of a strategic Bitcoin reserve in the United States. The company issued an open letter urging regulators to take proactive steps to maintain the country’s leadership in the evolving global financial system.

850m Bitcoin Buy Completes debt MARA offering Plans
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