Bitcoin (BTC) mining juggernaut MARA Holdings today announced the successful completion of a $950 million upsized offering of zero-interest convertible senior notes. A portion of the proceeds will go toward accumulating additional BTC, with the remainder allocated to general corporate purposes.
Notably, the firm has granted initial purchasers a 13-day option to acquire an additional $200 million in convertible senior notes. After accounting for initial purchasers’ discounts and commissions, MARA received net proceeds to the tune of $940 million.
Of the $940 million received, around $18.3 million was used to repurchase $19.4 million in existing convertible notes due 2026. Similarly, roughly $36.9 million was deployed toward capped call hedges to mitigate potential dilution from future share conversions.
The remaining funds will be used toward buying more BTC and for other general purposes, such as strategic acquisitions, working capital, expansion of existing assets, and repayment of additional debt.
To explain, zero-interest convertible senior notes are debt securities that pay no interest but can be converted into company shares later. They’re considered “senior” because they have priority in repayment over other debts in the event of liquidation.
Today’s $950 million raise is expected to widen MARA’s lead over Twenty One Capital. However, the firm still trails Michael Saylor’s Strategy, which dominates with 607,770 BTC on its balance sheet.
MARA Holdings’ shares recorded slight pullback following the announcement, as they traded at $17 – down 1.42% on the day. Notably, the Nasdaq-listed firm’s stock has declined 6.85% over the past six months.
