MARA Plans $700M in New Notes to Boost Bitcoin Holdings

MARA is planning to raise $700 million through the issuance of yet another convertible note to double down on accumulating Bitcoin.

The Bitcoin mining giant announced plans on Monday to raise $700 million through the issuance of a new convertible note due in 2030. The offering will include an option for initial purchasers to acquire an additional $105 million in notes.

This latest issuance comes just three months after MARA raised $300 million through convertible notes due in 2031, which carried a 2.125% interest rate. In the third quarter of this year, the company secured $315 million from stock offerings and $291 million through debt financing.

MARA said it intends to allocate up to $200 million of the net proceeds from the new offering to repurchase a portion of its existing convertible notes due in 2026. The company had previously raised $750 million in November 2021 through convertible notes due in 2026, during the peak of the last Bitcoin bull market.

The remaining proceeds from the newly proposed issuance will be used to acquire additional Bitcoin and fund general corporate purposes, including working capital, strategic acquisitions, asset expansion, and the repayment of debt and other outstanding obligations.

Following the issuance of its $300 million convertible notes earlier this year, MARA purchased over 4,000 BTC. As of October 31, the company held over 27,000 BTC on its balance sheet.

MARA’s stock price was down 4.9% during pre-market trading on Monday.