MARA closes $850 million convertible note offering to boost Bitcoin holdings

MARA Holdings, Wall Street’s largest publicly traded Bitcoin miner, has successfully closed a second offering of $850 million of convertible senior notes.

The company made the announcement on December 5 via an X post, noting that the primary use of the proceeds will be to acquire additional Bitcoin and repurchase some of its outstanding convertible notes due 2026.

The latest offer of convertible tickets from MARA

In an accompanying press release, MARA confirmed that the notes will be issued without interest, except in exceptional cases where special interest is applied with the expectation that the principal amount will remain unchanged.

The notes mature in 2031 and are convertible at the company’s discretion into cash, common stock or a combination of both.

The Bitcoin miner expects net proceeds from this offering to be approximately $835 million, with the potential to increase to $985 million if additional notes are fully purchased.

The company plans to use approximately $48 million of these proceeds to repurchase approximately $51 million of its existing convertible notes due 2026.

The remaining proceeds will be used to acquire more Bitcoin and for general corporate purposes such as working capital, strategic acquisitions, asset expansion and debt repayment.

Previous offers and purchases

This move follows MARA’s previous $700 million convertible senior note offering due 2030. The company also recently acquired 703 BTC in November after previously buying 5,771 BTC, bringing its total monthly acquisitions at 6,474 BTC.

The purchase followed an earlier sale of interest-free convertible notes that raised $1 billion. At the time, the mining company also revealed that it has approximately $160 million in remaining funds, which it plans to use for future Bitcoin purchases during price dips.

As of the latest update, BitcoinTreasuries shows that MARA now has a total of 34,794 BTC, valued at approximately $3.3 billion. This positions the company as the second-largest holder of the cryptocurrency, behind only MicroStrategy, which recently announced a purchase of $1.5 billion worth of Bitcoin.

The market has responded positively to the company’s latest moves. On December 5, the company’s shares closed up 3.30% to $25.96, data from Google Finance shows.

Moreover, in the last month, MARA’s share price has increased by 59.85% and its year-to-date growth is 13.2%.

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