MARA increases convertible senior notes offering to $850 million, with part of proceeds to be used to increase Bitcoin holdings

According to official news, Bitcoin mining company MARA Holdings, Inc. announced that the total principal amount of its 0.00% convertible senior notes due in 2031 has been increased to $850 million (initially announced as $700 million). MARA also granted the initial purchasers of the notes the option to purchase up to $150 million in total principal amount of the notes within 13 days from the date of the initial 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 will be approximately $835.1 million (approximately $982.5 million if the initial purchasers fully exercise their option to purchase additional notes) after deducting the discounts and commissions of the initial purchasers, but excluding the estimated issuance expenses payable by MARA. MARA expects to use approximately $48 million of the net proceeds from the sale of the notes to repurchase approximately $51 million in aggregate principal amount of its existing convertible notes due 2026 in a privately negotiated transaction, with the remainder of the net proceeds to be used to purchase additional 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 obligations.