MARA Closes $850M Convertible Note to Raise Bitcoin Holdings

MARA Holdings, Wall Street's largest publicly traded bitcoin miner, has successfully closed its second round of $850 million convertible senior notes.

The company announced on Dec. 5 via XPost that the primary use of the proceeds will be to acquire more bitcoins and purchase some outstanding convertible notes due in 2026.

Mara's latest offering of convertible notes

In an accompanying press release, MARA confirmed that the notes will be issued without interest, except in rare cases where the special interest may be applied to the principal amount, which is expected to remain unchanged.

The notes are set to mature in 2031 and will be convertible into cash, common shares or a combination of the two at the company's discretion.

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

The Company plans to allocate approximately $48 million of these proceeds. It plans to purchase approximately $51 million of existing convertible notes, due in 2026.

The remaining funds will be used to acquire additional bitcoins and for general corporate purposes, including working capital, strategic acquisitions, asset expansion and debt repayment.

Previous offers and purchases

The move replaces MARA's previous $700 million zero-interest convertible senior notes due 2030, and the company recently acquired 703 BTC in November after buying 5,771 BTC, bringing its total monthly purchases to 6,474 BTC.

The purchase follows an earlier zero-interest convertible senior note sale that raised $1 billion. At the time, the mining company said it had about $160 million in cash remaining, which it plans to buy back during future bitcoin price spikes.

As of the latest update, BitcoinTreasuries shows that MARA now holds a total of 34,794 BTC, which is roughly $3.3 billion. This puts the company as the second largest corporate cryptocurrency holder behind MicroStrategy, which recently announced a $1.5 billion purchase of Bitcoin.

The market has responded positively to the company's recent moves. According to Google Finance data, on December 5, the company's stock closed up 3.30%, reaching $25.96.

Additionally, in the past month, MARA's stock price has increased by 59.85%, and the year-to-date growth has reached 13.2%.