Bitcoin mining giant Marathon Digital Holdings (MARA) has raised $950 million through a private offering of zero-interest convertible notes to institutional investors to grow its mining and buy more BTC.
The deal was completed on July 25 and conducted under SEC Rule 144A, which allows securities offerings to qualified institutional buyers. MARA netted approximately $940.5 million after expenses.
Convertible Terms and Allocation
Of the total raised, $18.3 million was allocated to repurchase existing debt, while $36.9 million was used for capped call transactions, a strategy designed to minimize dilution if MARA stock rises sharply. Each $1,000 note is convertible into approximately 49 shares, with a conversion price of $20.26, capped at $24.14 per share.
The remaining funds will be used to purchase more Bitcoin and fund operational expansion. Marathon already holds nearly 50,000 BTC, worth over $5.75 billion at current prices, making it one of the largest public Bitcoin holders globally.
Financial Pressure and Liquidity Concerns
According to InvestingPro, MARA posted $705 million in revenue over the past 12 months but faces liquidity challenges. Its current ratio stands at 0.79, indicating potential difficulty in covering short-term liabilities. Analysts warn that the firm may face near-term debt service pressure unless revenue improves.
The new notes mature in August 2032 and do not bear interest. Investors have an option to purchase an additional $200 million, which would raise the total offering to $1.15 billion.
Big firms are watching MARA closely. Piper Sandler now thinks the stock could reach $26 because of its Bitcoin plans. UBS set a higher target of $203, based on what it expects MARA to earn. This shows that big investors are paying more attention.
MARA raised $950 million to stay strong in Bitcoin mining. It’s pushing forward, even with money problems. Other miners could follow, as more people trust crypto.
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