Bitcoin News Today: MARA Issues $950M 0.00% Convertible Notes to Fund Bitcoin, Corporate Expansion

MARA Holdings Inc. has finalized a $950 million convertible senior notes offering to fund Bitcoin purchases and corporate expansion, marking one of the largest debt financings in the crypto infrastructure sector. The 0.00% coupon notes, maturing in 2032, were issued under Rule 144A of the Securities Act and closed on July 25, 2025. The company reported net proceeds of $940.5 million after transaction costs, with $18.3 million already used to repurchase existing 2026 notes and $36.9 million allocated to capped call transactions to mitigate equity dilution risk [1].

The offering highlights a growing trend of convertible debt as a strategic financing tool among crypto firms. MARA’s approach allows it to raise capital without immediate interest expenses while retaining flexibility to convert the notes into cash, common stock, or a combination. The initial conversion rate is set at 49.3619 shares per $1,000 principal, equivalent to $20.26 per share, with a cap price of $24.14 per share—40% above its July 23 average stock price. The notes can be redeemed in 2030 if the stock trades at 130% of the conversion price for 20 consecutive trading days [1].

Proceeds will primarily fund Bitcoin accumulation and infrastructure scaling, including strategic acquisitions and debt reduction. This aligns with broader industry dynamics where institutional Bitcoin demand, driven by ETF inflows, is reshaping corporate capital allocation. MARA’s use of debt financing reflects a competitive edge in securing capital amid a fragmented market where hashrate expansion and treasury management are critical for long-term leadership [1].

The transaction underscores the risks and opportunities inherent in capital-intensive crypto operations. While interest-free notes free cash for Bitcoin purchases, they also introduce conversion and redemption contingencies. Capped call agreements, however, limit dilution to shareholders if the notes convert to equity. Analysts note that such structures are increasingly favored by firms balancing growth ambitions with shareholder protection [1].

MARA’s move comes as the crypto sector consolidates, with larger players leveraging capital markets to outpace rivals. The company’s focus on Bitcoin treasury management mirrors strategies employed by other miners and infrastructure providers, who are prioritizing liquidity and asset diversification amid regulatory uncertainties and price volatility [1].

The offering’s success signals investor confidence in MARA’s growth trajectory, despite macroeconomic headwinds. By securing a 0.00% coupon, the company avoids recurring interest obligations, a departure from traditional debt instruments. This approach, however, hinges on its ability to manage potential conversion scenarios without compromising operational flexibility [1].

Source: [1] [MARA Wraps $950M Notes Offering for Bitcoin and Expansion] [https://cryptonews.com/news/mara-950m-notes-offering-bitcoin-expansion/]