MARA plans $700M convertible bond offering, aims to boost Bitcoin reserves
MARA is the second-largest holder of Bitcoin
MARA Holdings (formerly Marathon Digital) announced its intention to issue a new $700 million bond offering.
Of this amount, up to $200 million will be allocated to repurchase existing bonds maturing in 2026, while the remaining funds will be used for general corporate purposes and further investments in Bitcoin.
MARA is the second-largest holder of Bitcoin after MicroStrategy, using the digital asset as part of its corporate reserves. According to Bitcoin Treasuries, MARA currently holds 25,945 BTC, valued at approximately $2.35 billion. For comparison, MicroStrategy, ranked first, holds 279,420 BTC worth $25.3 billion, while Riot Platforms holds 10,019 BTC valued at $907 million.
There will be more bitcoins
According to MARA Holdings' press release, the convertible senior notes, maturing in 2030, will be offered through a private placement to qualified institutional buyers. Additionally, within a 13-day period starting from the date of the initial bond issuance, initial buyers will have the right to purchase additional bonds totaling up to $105 million.
Interest payments on the bonds will begin in 2025 and will be made semi-annually on March 1 and September 1. Bondholders will have the option to require MARA to repurchase all or part of their bonds for cash on December 1, 2027. After March 5, 2028, MARA may redeem the bonds at its discretion, subject to specific conditions.
The bond issuance plan also includes provisions for converting the bonds into MARA common shares or a combination of shares and cash.
Two major Bitcoin mining companies, Marathon Digital Holdings and Riot Platforms, have reported record monthly Bitcoin production levels in October 2024, marking their highest output since April's halving event. This increase comes despite mounting difficulties in the Bitcoin mining industry, including a rising network hash rate that has intensified mining difficulty across the board.
