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On November 21, 2024, MARA Holdings, Inc. (NASDAQ: MARA), a prominent player in the digital asset space, announced the successful completion of a $1 billion offering of 0% Convertible Senior Notes due 2030. This funding marks a pivotal shift in the company’s strategy, with a focus on expanding its Bitcoin holdings and repurchasing existing convertible notes due in 2026.
The offering, which closed on November 20, raised approximately $980 million in net proceeds. MARA plans to allocate $199 million to repurchase $212 million in outstanding 2026 convertible notes. The remainder of the funds will be used to bolster its Bitcoin reserves, further solidifying its position in the growing digital asset market. The funds may also be used for general corporate purposes, including acquisitions and debt reduction.
The notes, which carry no regular interest, are convertible into cash, MARA common stock, or a combination of both, with an initial conversion price of $25.91 per share, representing a premium over the company’s recent stock price. The offering targets qualified institutional buyers under Rule 144A of the Securities Act.
This strategic move highlights MARA's continued commitment to its role in the digital asset sector, signaling a long-term shift toward accumulating Bitcoin as part of its evolving business model.
Many are observing the market’s enthusiasm toward companies like MicroStrategy for their Bitcoin accumulation strategy. Realizing the rewarding nature of a HODL strategy, I expect more companies to begin including Bitcoin in their treasury reserves.
Disclaimer: This article is for general informational and educational purposes only and should not be considered legal, tax, accounting, or investment advice. The views expressed are my own and do not constitute financial advisory services. I/we have a beneficial long position in COIN. I have no business relationship with any company whose stock or cryptocurrency is mentioned in this article.