Mara Holdings, a cryptocurrency mining and blockchain technology company, has completed a $1 billion issuance of zero-coupon convertible senior notes due March 1, 2030. The company plans to use most of the proceeds to acquire Bitcoin.
The notes, issued to institutional investors under Rule 144A of the Securities Act of 1933, include a conversion price significantly higher than Mara’s recent stock value. The notes can be redeemed under favorable conditions beginning in 2028.
Approximately $199 million, or 20% of the funds, will be allocated to address upcoming debt obligations. The remaining proceeds will support strategic investments, operational growth and Bitcoin BTCUSD purchases.
The development follows a similar approach to MicroStrategy, which has recently increased its note sales to $2.6 billion for BTC purchases — bolstering market confidence in the cryptocurrency’s potential to reach $100,000.
Debt repurchase and BTC acquisition
According to the company’s official press release, it plans to allocate $199 million of $980 million in net proceeds to repurchase $212 million of its convertible notes due 2026.
The remaining funds are set for allocation to strategic acquisitions and working capital and “to be used to acquire additional Bitcoin.”
The new notes carry an initial conversion price of approximately $25.91 per share, which equates to a 42.5% premium over the average trading price before the offering’s pricing.
Trump’s presidency to boost BTC mining
Fred Thiel, Mara’s chairman and CEO, shared his optimism for the future of Bitcoin mining during the Bitcoin 2024 conference in Nashville in July.
Thiel explained that “under a Trump administration,” he expects the BTC mining industry will “flourish,” contrasting this view by stating that Harris’ administration would have “no idea what the energy policy is going to be.”
Since Trump’s election victory on Nov. 5, Thiel’s enthusiasm for the industry’s growth appears aligned with Mara’s focus on allocating funds to Bitcoin acquisitions.
MARA Q3 earnings miss triggers 9% dip
Mara’s third-quarter earnings, released on Nov. 12, revealed a $0.34 per share loss, slightly exceeding analysts’ expectations. This led to a 9.1% decline in after-hours trading.
Despite the drop, the company reported a 34.5% year-over-year revenue increase to $131.6 million. However, this fell short of the $148.1 million analysts had anticipated.
On Nov. 11, Mara’s stock surged 30% as Bitcoin neared $90,000, contributing to a 10% rise in the company’s share price since the start of the year.