MARA Holdings, Inc., a leading Bitcoin mining company, has unveiled plans for a $700 million private offering of convertible senior notes. This move aims at buying more Bitcoin as the company recently adopted the HODL strategy. In addition, the sale proceeds would be utilized in other business activities.
MARA to Buy More Bitcoin
MARA’s convertible notes, set to mature in March 2030, will be offered to institutional buyers under Rule 144A of the Securities Act of 1933. Additionally, the company may grant initial purchasers an option to acquire an extra $105 million in notes within a 13-day window following issuance.
These unsecured senior notes will accrue interest semi-annually on March 1 and September 1, beginning March 2025. They will mature on March 1, 2030, unless converted, repurchased, or redeemed earlier. Starting March 5, 2028, MARA may redeem part or all of the notes, provided a minimum of $75 million in notes remains outstanding post-redemption.
Today, we announced a proposed private offering of $700 million of convertible senior notes.⁰⁰Proceeds to be used primarily to acquire bitcoin, repurchase existing convertible notes due in 2026, and for general corporate purposes. https://t.co/0vg7ri8BDX
— MARA (@MARAHoldings) November 18, 2024
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Holders may also request repurchase on December 1, 2027. Conversion of the notes will depend on specific conditions before December 2029, after which conversion will be open until two days before maturity. Conversion options include cash, company shares, or a combination. Key terms such as interest rate and conversion rate will be finalized at pricing, using the stock’s weighted average price from a specified trading window.
Moreover, MARA plans to allocate up to $200 million from the proceeds to repurchase its 2026 convertible notes in private deals. Remaining funds are earmarked for strategic purposes, including Bitcoin acquisitions, corporate initiatives, working capital, debt repayment, and asset expansion.
Latest Corporate BTC Acquisition
Michael Saylor’s MicroStrategy has acquired a whopping $4.6 billion worth of Bitcoin recently. Moreover, the company’s total BTC holding has surpassed the $16 billion mark. With increased institutional investment gushing into Bitcoin, netizens expect the BTC price to surge to $100,000 in this week itself.
Furthermore, Japanese public-listed company Metaplanet announced its plans to issue $11.3 million in bonds to expand its BTC holdings. This further solidifies the narrative of an extended BTC surge, according to crypto experts. Nonetheless, fears of volatility remain as FOMO kicked in amid the recent rally.
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