MARA Holdings Expands Convertible Notes Offering by $150 Million Due to High Demand
MARA Holdings, a major player in the bitcoin space, increases its convertible notes offering to enhance its Bitcoin holdings and reduce debt.
Marathon Digital Holdings (MARA) has increased its convertible notes offering from $700 million to $850 million amid strong investor interest. The company intends to utilize the expected net proceeds of $833 million to purchase more bitcoin while repaying existing debts.
Key Updates
- MARA has upped its zero-coupon convertible notes offering to $850 million from $700 million.
- Plans to acquire more bitcoin with net proceeds of $833 million.
The offering is set to close on November 20 and targets qualified institutional buyers. The convertible notes, maturing on March 1, 2030, will not pay regular interest and can be swapped for cash or shares of MARA common stock. The initial conversion price is approximately $25.91, reflecting a 42.5% premium over the current stock price of $18.18.
MARA remains the second largest publicly traded holder of bitcoin, currently owning 27,562 BTC. This announcement follows similar moves by companies like MicroStrategy and Semler Scientific, which have increased their bitcoin holdings. MARA's shares rose nearly 2% in pre-market trading after experiencing a decline of almost 14% earlier.
