Today, Nasdaq-listed MARA Holdings announced plans to raise $850 million. According to a filing with the US Securities and Exchange Commission (SEC), the private offering includes a $150 million upsell option, potentially bringing the total raise to $1 billion.
The offering targets qualified institutional investors, who will have the option to convert the notes into cash, MARA equity, or a combination of both. The notes will mature in August 2032.
Investors can also force MARA Holdings to repurchase the notes in 2030 if the company’s stock underperforms. Conversely, the company has the right to redeem the notes starting in January 2030, assuming its stock performs above a specified threshold.
Of the total amount raised, up to $50 million may be used to repurchase a portion of the company’s existing 1% convertible notes due in 2026 – improving MARA’s balance sheet. The remainder will go toward purchasing additional Bitcoin and supporting other “general corporate initiatives.”
Despite the announcement, MARA’s stock has declined 8.68% on the day, trading at $17.95 at the time of writing. Still, the stock is up over 7% on a year-to-date (YTD) basis.
