MARA Holdings Raises $1 Billion in Debt for Bitcoin Investments
By Vivian Nguyen November 21, 2024Historic Offering
MARA Holdings made headlines on Thursday, declaring the successful completion of a remarkable offering of zero-interest convertible senior notes, amassing a substantial $1 billion. These funds are primarily aimed at boosting the company’s Bitcoin acquisition efforts. This offering is a historic milestone, representing the largest convertible notes issuance ever in the realm of Bitcoin mining. Initially targeted at $850 million, the demand from investors was so high that MARA decided to increase the offering by an additional $150 million, ultimately exceeding its original goal of $700 million. After deducting commissions and discounts, MARA announced net proceeds totaling approximately $980 million. The company plans to spend around $199 million on repurchasing $212 million of its existing convertible notes that are set to mature in 2026. The remaining funds will focus on Bitcoin acquisitions and supporting various corporate projects.Investment Details
The convertible notes are scheduled to mature on March 1, 2030. Investors have the option to convert their notes into cash, shares of MARA common stock, or a mix of both. The starting conversion rate is set at 38.5902 shares per $1,000 of principal, equating to a conversion price of $25.9133 per share, which is 42.5% higher than MARA’s volume-weighted average price of $18.1848 observed on November 18, 2024. The press release detailed that investors can compel MARA to repurchase their securities at the original principal amount on December 1, 2027, or under certain fundamental changes. Furthermore, if MARA’s stock price exceeds 130% of the conversion price for a specified duration, the company has the option to redeem the notes starting March 5, 2028.Focused Strategy
MARA Holdings remains committed to a clear strategy focused on Bitcoin accumulation. Following a “HODL” philosophy, the company retains all mined Bitcoin while simultaneously purchasing more. Currently, MARA stands as a leading publicly traded holder of Bitcoin, with about 27,562 BTC in its possession, valued at approximately $2.6 billion. “`htmlSource: Cryptobriefing.com
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