Mara Holdings Plans $1 Billion Convertible Note Offering for Potential Bitcoin Purchase

A major player in the cryptocurrency mining sector, Mara Holdings, announced plans Wednesday to sell up to $1 billion in convertible senior notes, a portion of the fundraising intended to acquire Bitcoin (BTC).

In the offering, $850 million in senior notes will be sold to qualified institutional buyers, maturing in 2032. An oversubscription option allows buyers to acquire up to a further $150 million, potentially bringing the total raised to $1 billion.

Proceeds allocation details indicate that up to $50 million is earmarked for repurchasing existing notes, while the majority of the potential funds will be used for operational costs, further Bitcoin acquisitions, and general corporate needs. Notably, these notes carry no interest rate.

Mara, which emphasizes that the transaction remains subject to market conditions and closure is not guaranteed, continues to view Bitcoin as a strategic treasury asset.

Bitcoin as Core Treasury Strategy Post-Expansion

The decision comes after Mara Holdings finalized a significant acquisition, acquiring a minority stake in Two Prime, an investment manager overseeing $1.75 billion, thereby adding substantially to its BTC management capacity.

Operations data also highlights a strong performance, with reports indicating a 35% increase in BTC production by Mara in May 2024, despite challenges like rising mining difficulty and network hashrate. The company’s annualized mining revenue surged past $752 million, setting a new record for the firm.

Further evidence of the company’s commitment involves its disclosed holding of approximately 50,000 BTC, placing it as the second-largest corporate holder of Bitcoin according to available data.

This strategic focus on acquiring and holding physical Bitcoin aligns with moves by similar firms, including past disclosures of exploring a $2 billion share sale program with institutional investors, also aimed at bolstering Bitcoin reserves.