MARA Holdings, Inc. (NASDAQ: MARA), a global leader in digital asset computing, has announced its intention to raise $700 million through a private offering of convertible senior notes due 2030.

The offering, subject to market conditions, targets qualified institutional buyers under Rule 144A of the Securities Act of 1933. The company also plans to grant an option for initial buyers to purchase up to an additional $105 million within a 13-day window after issuance.

Key Details of the Offering

The notes will be unsecured and bear interest payable semi-annually beginning March 1, 2025. They are set to mature on March 1, 2030, unless redeemed, converted, or repurchased earlier. Starting in 2028, MARA will have the option to redeem all or part of the notes for cash. Investors will also have the right to request repurchase on December 1, 2027.

Conversion terms will allow the notes to be exchanged for cash, MARA common stock, or a combination, based on the company’s discretion. Conversion rights prior to December 1, 2029, will be limited to specific circumstances, becoming unrestricted thereafter.

Planned Use of Proceeds

MARA plans to allocate $200 million of the proceeds to repurchase a portion of its existing convertible notes due 2026. The remainder will fund Bitcoin acquisitions, general corporate purposes, and potential strategic expansions. This strategy reflects MARA’s dual focus on growth and strengthening its position in the cryptocurrency market.

Marathon Digital Holdings, Inc. (NASDAQ: MARA) currently owns 25,945 Bitcoins as of Sept. 12, 2024