MARA Holdings upsizes its zero-coupon convertible notes offers by $150M

MARA Holdings (MARA) has increased its previously announced convertible note offering from $700 million to $850 million. Yesterday, the U.S.-based Bitcoin miner MARAthon Digital Holdings, Inc. announced an offering of $700 million of convertible senior notes. 

According to the company’s official announcement, the notes will be issued to institutional investors who meet specific criteria and qualifications through a private listing.

Today, the firm upped the option for initial purchasers to buy additional notes from $105 million to $150 million. The private offering, which is targeted at qualified institutional purchasers, is anticipated to close on November 20.

MARA Holdings ups offerings amid overwhelming investor demand

According to the official announcement, the notes will be unsecured, which is MARA’s senior obligation. The notes will not bear regular interest, and the notes will mature on March 1, 2030, unless earlier repurchased, redeemed, or converted by their terms. 

On or after March 5, 2028, “subject to certain conditions, MARA may redeem for cash all or any portion of the notes at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, if the last reported sale price of MARA common stock has been at least 130% of the conversion price then in effect for a specified period of time ending on, and including, the trading day.”

The initial conversion price is roughly $25.91, a 42.5% premium to MARA’s current stock price of $18.18.

The proceeds are expected to be roughly $833 million, with $199 million used to repurchase $212 million in MARA’s existing convertible notes due 2026. The remaining funds will be used for Bitcoin (BTC) purchases, asset expansion, and general corporate purposes.

The miner explained that the notes will carry interest semi-annually on March 1 and September 1 of each year. The first interest payment will be made on March 1, 2025, and the notes will reach maturity on September 1, 2031, unless the firm redeems, converts, or repurchases them.

The final terms of the notes are still unknown but will be determined at a later date.

MARA Bitcoin holdings

According to Bitcoin Treasuries data, Marathon Digital has 27,562 bitcoins worth $2.49 billion. On October 31, the firm added 720 bitcoins to its balance sheet, followed by 642 bitcoins on October 2. The company is the world’s second-largest corporate Bitcoin holder, trailing only the crypto giant and software company MicroStrategy.

According to on-chain data, Microstrategy currently holds 331,200 bitcoins worth over $30.6 million at current prices. According to CoinGecko, Bitcoin (BTC) is currently valued at $92,651, up 0.7% from an hour ago and 3.0% since yesterday. The value of BTC today is 7.2% higher than it was seven days ago.

The announcement today comes after several other BTC holders companies, specifically MicroStrategy (MSTR) and Semler Scientific (SMLR), purchased more Bitcoin.

The company’s shares are up nearly 2% in pre-market trading. Yesterday, MARA stock declined by over 14%, testing lows at $17.72 and closing at $18.11. The stock got assistance from the 50 and 200 EMA moving averages before returning to the consolidation zone established in August.

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