MARA Holdings, Inc., a prominent player in Bitcoin mining, has revealed plans to raise the total principal amount of its 0.00% convertible senior notes due in 2031, now set at $850 million, a significant increase from the previously declared $700 million. In addition, MARA has provided the initial purchasers of these notes an opportunity to acquire up to an additional $150 million in principal within 13 days following the initial issuance.
This offering is projected to conclude on December 4, 2024, pending standard closing conditions. The anticipated net proceeds from the sale are estimated to be around $835.1 million after deducting discounts and commissions for the initial purchasers, though this figure excludes estimated issuance expenses to be incurred by MARA.
Should the initial purchasers decide to fully exercise their option for additional notes, net proceeds could potentially rise to approximately $982.5 million. MARA intends to allocate about $48 million of the net proceeds for the repurchase of approximately $51 million in principal amount of its existing convertible notes due in 2026 through negotiated transactions.
The remainder of the net proceeds is to be directed towards purchasing more Bitcoin and general corporate purposes. These purposes include augmenting working capital, pursuing strategic acquisitions, expanding existing assets, and paying down other debts and outstanding liabilities..