MARA Holdings is planning to raise $850 million through a private offering of convertible senior notes, the company said in a press release on Tuesday. The notes, which will not bear interest and are due in 2032, are being offered to qualified institutional investors under Rule 144A of the U.S. Securities Act. MARA also said buyers may be given the option to purchase an extra $150 million in notes, depending on market conditions.
As per the official press release, part of the proceeds will be used to repurchase its existing 1.00% convertible notes due in 2026. MARA expects to spend up to $50 million on this. The rest of the money will go towards buying more Bitcoin, entering hedging agreements, and covering general business expenses, such as working capital and paying down other debts.
The new notes can be converted into cash, MARA shares, or both, at the company’s choice. Conversion will be allowed in limited periods before May 2032, and at any time shortly before maturity. MARA also has the right to redeem the notes for cash after January 2030, as long as certain conditions are met.
MARA shared that if its stock price falls below the conversion price, noteholders can ask for their money back on 4 January, 2030. The company said the final interest terms and conversion rate will be set at pricing, based on a two-hour average price of its shares on the day the deal closes.
As part of the deal, MARA will enter capped call transactions to limit potential share dilution. It expects that some investors involved in the deal may buy or sell MARA shares or enter into other trades, which could affect its stock price during and after the offering.
The move adds to MARA’s strategy of growing its Bitcoin reserves while managing its debt profile. It remains one of the biggest corporate holders of Bitcoin, alongside firms like MicroStrategy.
Also Read: U.S. Looks to Grab $7.1M in Crypto From Investment Scam
