Bitcoin News Today: MARA raises $950 million in convertible notes to expand Bitcoin treasury, mining infrastructure

Marathon Digital Holdings (MARA), a publicly traded Bitcoin mining company, has secured $950 million through a private offering of zero-coupon convertible notes to institutional investors, marking one of the largest capital raises in the cryptocurrency sector this year [1]. The transaction, completed on July 25 under SEC Rule 144A, provided MARA with $940.5 million in net proceeds after expenses. The funds will be allocated to expand the company’s Bitcoin treasury, acquire additional mining infrastructure, and cover general corporate expenses [1].

Of the raised capital, $18.3 million was allocated to repurchase existing debt, while $36.9 million was used for capped call transactions to limit potential dilution if MARA’s stock price rises [1]. The remaining funds will directly support Bitcoin purchases and operational growth. MARA already holds approximately 50,000 BTC, valued at over $5.75 billion at current prices, positioning it as one of the largest public holders of Bitcoin globally [1].

The convertible notes, which mature in August 2032 and carry no interest, include provisions allowing investors to convert them into equity at a fixed rate of $20.26 per share, capped at $24.14 [1]. The offering also includes an option for investors to purchase an additional $200 million, potentially raising the total to $1.15 billion [1]. Analysts have noted MARA’s aggressive capital-raising strategy amid liquidity challenges, as the company reported a current ratio of 0.79 in the past 12 months, indicating potential difficulties in covering short-term liabilities [3].

Market reactions to the raise highlight diverging investor sentiment. Piper Sandler analysts raised MARA’s price target to $26, citing its Bitcoin accumulation strategy, while UBS set a more optimistic target of $203 based on projected earnings [1]. These forecasts underscore growing institutional interest in MARA’s long-term prospects. However, critics caution that the company’s success hinges on Bitcoin’s price trajectory and operational efficiency, as historical periods of negative cash flow raise questions about its ability to sustain growth [8].

The capital infusion aligns with broader trends in the Bitcoin mining sector, where firms are increasingly leveraging debt to scale operations and secure market share. MARA’s approach contrasts with peers that have relied on equity offerings or asset sales to manage cash flow pressures [4]. By avoiding equity dilution, the company aims to strengthen its balance sheet while accelerating Bitcoin purchases in a competitive landscape marked by rising operational costs and regulatory uncertainties [4].

Industry observers view the raise as a confidence-building move, signaling MARA’s commitment to dominating the Bitcoin mining space. JPMorgan recently upgraded the stock following improved hashrate targets, reflecting renewed optimism about the company’s strategic positioning [6]. Meanwhile, crypto news platforms have framed the $950 million raise as a pivotal step in MARA’s trajectory, with some analysts suggesting it could catalyze a broader institutional push to consolidate Bitcoin holdings [7].

Despite the optimism, the absence of detailed financial projections for Bitcoin purchases or returns has left investors assessing the strategy’s efficacy based on historical performance. The company’s ability to deploy the capital without overleveraging its balance sheet will remain a focal point for analysts monitoring its financial health [9].

Source:

[1] [MEXC](https://www.mexc.com/news/mara-holdings-raises-950-million-in-convertible-bond-offering-to-build-more-bitcoin/62566)

[3] [InvestingPro](https://coinmarketcap.com/community/articles/68879196d834536705bade1c/)

[4] [Investing.com](https://www.investing.com/news/company-news/mara-closes-950-million-convertible-senior-notes-offering-93CH-4155189)

[6] [Investing.com](https://www.investing.com/news/analyst-ratings/mara-stock-rating-upgraded-by-jpmorgan-on-improved-hashrate-targets-93CH-4155268)

[7] [X](https://x.com/BitcoinMagazine/status/194981176****354892) and [X](https://x.com/coinbureau/status/1949821637710303630)

[8] [Cryptotimes](https://www.cryptotimes.io/2025/07/28/publicly-traded-mara-raised-950-million-to-buy-more-bitcoin/)

[9] [Bitget](https://www.bitget.com/news/detail/12560604883180)