MARA Holdings plans to issue $700M in convertible notes to boost Bitcoin holdings, investing in more BTC and corporate growth.
MARA Holdings, a leading Bitcoin mining company, has announced a major move to expand its Bitcoin holdings. The company plans to offer $700 million in zero-coupon convertible senior notes, which are due in 2031. Furthermore, MARA will give options of $105 million. A large part of the funds will be directed toward acquiring additional Bitcoin.
MARA also said that the initial purchasers of the notes will have the right to purchase up to an additional $105 million of notes within 13 days from the first offer. However, the offering shall be made and completed only when the market conditions and other circumstances permit the same. It is uncertain to say that it would occur or at what conditions.
MARA Holdings made one of the biggest buys of the week when it bought 6,474 Bitcoins on November 28. This cost the company about $615 million and was done through $1 billion coming from convertible notes. As a result of this acquisition, MARA has assets of about 34,794 BTCs. At a market price of $95000 per Bitcoin, these holdings translate to about $3.3 billion. All the new BTC were bought at an average of $ 95,395 per BTC. It also declared a Bitcoin yield per share of 36.7 for the year to date.
MARA to Allocate Funds for Bitcoin Purchases and Corporate Expansion
As part of the offering, MARA intends to utilize some of the amounts to repurchase some of its 2026 convertibles. As much as $50 million of this will be for this buyback. The rest of the amount will be invested in buying even more Bitcoin and other miscellaneous expenditures for the company. Such expenses may include working capital, acquisitions that are strategic and paying off debts.
This news comes at a time when other companies are also going all out to invest in Bitcoin. For example, Japanese company Metaplanet said in a filing on November 28 that it will launch floating exercise price stock subscription rights. It will seek to mobilize 9.5 billion yen, or roughly $62 million. Metaplanet wants to use this funding to acquire more Bitcoin.
This example demonstrates that there is a tendency, namely, MARA has chosen such a path and Metaplanet has recently announced. More firms are approaching Bitcoin as something they would like to have on their balance sheet. This change is provoking more rational action in the crypto market through more purposeful investments. To MARA, the new offering and the recent Bitcoin buy demonstrate the company’s willingness to broaden its portfolio. Purchasing Bitcoins makes the company ready for future profits in the Bitcoin.
Finally, despite MARA Holdings’ intention to issue convertible notes and options to enhance its Bitcoin investment. This tactical acquisition was purchased recently and will contribute to the development strategy of the company.
