MARA Holdings, Inc. Prices Upsized $850 Million Convertible Notes Offering

MARA Holdings, Inc. (NASDAQ: MARA) recently announced the pricing of an upsized private offering of $850 million aggregate principal amount of its 0.00% convertible senior notes due 2031. The company disclosed this development in a press release issued on December 2, 2024. The offering is exclusively targeted at qualified institutional buyers under Rule 144A of the Securities Act of 1933.

The notes are set to be offered only to institutions deemed qualified, and the initial purchasers have been given an option to acquire an additional $150 million aggregate principal amount of notes within a 13-day period starting on the date of issue. The offering is slated to be finalized by December 4, 2024, subject to customary closing conditions.

It is anticipated that the net proceeds from this offering will be around $835.1 million, or approximately $982.5 million if the initial purchasers opt to exercise their full option. MARA aims to utilize roughly $48 million of the net proceeds towards buying back about $51 million in aggregate principal amount of its existing convertible notes due 2026 through privately negotiated transactions. The remainder of the funds will go towards acquiring additional bitcoin and for general corporate purposes, which may include working capital, strategic acquisitions, expanding existing assets, and settling additional debt and obligations.

The conversion of the notes, which are senior obligations of MARA, may take place either into cash, shares of MARA’s common stock, or a blend of both at the company’s discretion. The notes’ conversion rate initially stands at 28.9159 shares of MARA common stock per $1,000 principal amount of notes.

MARA highlights that this press release should not be treated as an offer to purchase the company’s existing convertible notes due 2026. Additionally, the company emphasized the forward-looking nature of these statements and disclaimed any obligation to update them due to changing circumstances, as mandated by applicable regulations.

For more details on this offering, the pricing press release along with relevant information is included as Exhibit 99.1 in the Current Report on Form 8-K submitted by MARA Holdings, Inc. to the U.S. Securities and Exchange Commission (SEC).

The closing note warns that uncertainties regarding market conditions and the successful completion of the offering could lead to actual results differing from forward-looking statements. Interested parties are advised to refer to the detailed risk factors outlined in MARA’s recent SEC filings for a comprehensive understanding of the undercurrents affecting the company’s financial health and decisions.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read MARA’s 8K filing here.

MARA Company Profile

MARA Holdings, Inc operates as a digital asset technology company that mines digital assets with a focus on the bitcoin ecosystem in United States. The company was formerly known as Marathon Digital Holdings, Inc and changed its name to MARA Holdings, Inc in August 2024. MARA Holdings, Inc was incorporated in 2010 and is headquartered in Fort Lauderdale, Florida.