MARA Holdings announced its intention to offer $700 million of convertible senior notes in a private offering to qualified institutional buyers. The company plans to use the net proceeds to repurchase a portion of its existing convertible notes and acquire additional bitcoin.
The senior notes intended to be offered would be due 2030, while the notes it would buy back with proceeds would be due 2026, according to a press release.
MARA expects to grant the initial purchasers of the due-2030 notes an option to purchase up to an additional $105 million aggregate principal amount of the notes. The notes will be unsecured, senior obligations of MARA and will bear interest payable semi-annually in arrears on March 1 and Sept. 1 of each year, starting in 2025. They will mature on Match 1, 2030, unless earlier repurchased, redeemed or converted.
The additional bitcoin acquired will be for general corporate purposes, the company announced, "which may include working capital, strategic acquisitions, expansion of existing assets, and repayment of additional debt and other outstanding obligations."
MARA, which was formerly known as Marathon Digital, reported third-quarter earnings results earlier this week. The largest publicly traded miner missed estimates, but improved from the second quarter.
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