Bitcoin News Today: MARA Raises $950M Convertible Notes for Bitcoin Accumulation and Debt Restructuring

MARA Holdings Inc. (MARA), the largest publicly traded Bitcoin miner by token holdings, has completed a $950 million convertible note offering to fund further Bitcoin purchases and debt management. The company raised $940.5 million in net proceeds after transaction costs, exceeding its initial $850 million target as investor demand strengthened. The 0% coupon convertible senior notes, maturing August 1, 2032, grant holders the right to convert principal into cash, shares, or a combination of both at MARA’s discretion. Proceeds will repurchase $19.4 million of its 2026 notes, fund $36.9 million in capped call transactions to limit dilution, and allocate remaining capital to Bitcoin acquisitions, operational expansion, and debt repayment [1].

The transaction reflects MARA’s strategy to leverage low-cost financing for Bitcoin accumulation while restructuring debt obligations. By converting $950 million of senior notes at a 0% coupon, the company reduces immediate interest expenses and secures long-term flexibility. The upsizing of the offering—initially priced at $850 million on July 23—signals investor confidence in MARA’s ability to generate returns through Bitcoin’s price appreciation and operational efficiencies. The notes include a 13-day over-allotment option for initial purchasers, allowing additional purchases up to $200 million beyond the base offering [1].

MARA’s Bitcoin treasury now totals 50,000 BTC, valued at approximately $6 billion, positioning it as the second-largest public entity by Bitcoin holdings. The firm’s decision to prioritize Bitcoin purchases aligns with broader industry trends, as companies increasingly use convertible debt with capped calls to manage dilution risks while retaining balance sheet flexibility. This approach mirrors strategies adopted by entities like Strategy, which holds 607,770 BTC valued at over $72 billion [1]. However, the success of MARA’s approach depends on Bitcoin’s price trajectory, which remains sensitive to macroeconomic shifts and regulatory developments.

The refinancing effort also underscores MARA’s focus on optimizing capital structure amid a challenging market environment. By repurchasing $19.4 million of its 2026 notes, the company reduces leverage and strengthens balance sheet resilience. The transaction’s approval by investors highlights growing institutional acceptance of Bitcoin as a corporate asset, despite ongoing debates about its volatility and regulatory classification. MARA’s stock closed at $17.04 on Monday, down 1.22%, with a $6.2 billion market capitalization and average daily trading volume of $834.7 million [1].

The offering includes a put right for holders on January 4, 2030, or upon specified fundamental changes, and a call option for MARA to redeem notes after January 15, 2030, if the stock price exceeds 130% of the conversion price. These terms provide flexibility for both investors and the company to adjust to market conditions over the decade-long maturity period. The transaction’s structure also aligns with broader macroeconomic narratives, as Bitcoin’s role as an inflation hedge and store of value gains traction in an era of accommodative central bank policies [2].

MARA’s ability to secure such a large offering in a competitive capital market environment signals strong institutional support for its business model. However, long-term viability will depend on its capacity to maintain operational efficiency, navigate rising electricity costs, and manage regulatory risks. The firm’s aggressive debt-repurchase program could stabilize financial obligations while mitigating dilution risks associated with convertible debt, but its Bitcoin-centric strategy remains contingent on the cryptocurrency’s price performance [1].

Source:

[1] [Bitcoin miner MARA closes upsized $950 million note sale](https://www.theblock.co/post/364411/bitcoin-miner-mara-upsized-sale?utm_medium=rss&utm_source=news.xml)

[2] [Stock Market News Today](https://www.stocktitan.net/news/today)