MARA Increases Convertible Note Offering to $850M Amid Strong Investor Demand
MARA Holdings (MARA) upsized its convertible note offering by $150 million to $850 million due to strong demand.
The company also increased the option for initial purchasers to buy more notes to $150 million from $105 million.
The offering is for qualified institutional buyers and is expected to close on November 20. Notes mature March 1, 2030, with no interest and can be converted to cash, stock or a combination of both at the company’s discretion.
The conversion price of $25.91 per share is 42.5% above MARA’s current stock price of $18.18. From the $833 million in proceeds, $199 million will be used to repurchase 2026 convertible notes and the rest will be used for Bitcoin buys, asset growth and corporate purposes.
MARA Grows as Bitcoin Leader
MARA, the second largest publicly traded Bitcoin holder with 27,562 BTC, is continuing to expand in the crypto space. MARA shares are up 2% in pre-market trading after falling 14% earlier in the week.
This is similar to what other major Bitcoin holders are doing, such as MicroStrategy and Metaplanet who are also adding to their crypto reserves.
MicroStrategy recently disclosed $4.6 billion in Bitcoin and plans to raise $1.75 billion more through convertible notes. They have 331,200 BTC and bought at an average of $88,627 per coin for an unrealized gain of $13.7 billion.
Metaplanet issued $11.3 million in bonds to buy more Bitcoin. They have over $64 million in Bitcoin investments.
Convertible Notes: A Strategic Financing Tool
Convertible notes have become a go-to financing vehicle for Bitcoin focused companies. MARA’s zero interest convertible notes maturing in 2030 are attractive to investors as they can convert into equity at a premium.
This is in line with the broader market trend where companies are using convertible notes to fund crypto investments in uncertain economic times. Inflation and geopolitical tensions have caused corporate treasurers to add Bitcoin to their reserve asset, a sign of institutional adoption.
Abra also has services for companies to hold crypto on their balance sheet. Another sign Bitcoin is a treasury reserve asset.
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