MARA Holdings Increases Convertible Notes Offering to $850 Million

According to Odaily, Bitcoin mining company MARA Holdings, Inc. has announced an increase in the total principal amount of its 0.00% convertible senior notes due in 2031 to $850 million, up from the initially announced $700 million. Additionally, MARA has granted the initial purchasers of the notes an option to buy up to an additional $150 million in principal amount within 13 days from the first issuance of the notes. The offering is expected to close on December 4, 2024, subject to customary closing conditions. MARA estimates that the net proceeds from the sale of the notes, after deducting discounts and commissions for the initial purchasers but excluding estimated issuance expenses payable by MARA, will be approximately $835.1 million. If the initial purchasers fully exercise their option to purchase additional notes, the net proceeds could reach approximately $982.5 million. The company plans to use around $48 million of the net proceeds to repurchase approximately $51 million in principal amount of its existing convertible notes due in 2026 through privately negotiated transactions. The remaining net proceeds will be allocated towards purchasing more Bitcoin and for general corporate purposes, which may include working capital, strategic acquisitions, expansion of existing assets, and repayment of additional debt and other outstanding liabilities.