Key Points
- MARA Holdings has increased its convertible senior notes offering from $700M to $850M to expand its Bitcoin portfolio.
- The company plans to use part of the proceeds to acquire more Bitcoin and support other strategic initiatives.
MARA Holdings, previously known as Marathon Digital Holdings Inc, has taken an unconventional approach to expand its Bitcoin portfolio. As the largest publicly traded Bitcoin miner on Wall Street, the company announced on December 2 that it has upsized its convertible senior notes offering from $700 million to $850 million.
The company declared in its official statement that a portion of the net proceeds from this move will be utilized to acquire more Bitcoin in the future and support other strategic initiatives.
MARA’s Strategy to Strengthen Bitcoin Portfolio
MARA’s announcement was shared on its official Twitter account, reflecting the company’s excitement and confidence in Bitcoin’s long-term value.
The offering includes zero-coupon convertible senior notes which are due to mature in 2031. These notes allow conversion into cash, common stock, or a combination of both at the company’s discretion.
MARA anticipates net proceeds of no less than $835 million. The company even believes that the proceeds may increase to $982 million if additional notes are fully subscribed.
The company plans to use a portion of the funds, approximately $48 million, to repurchase $51 million of convertible notes due in 2026. The majority of the proceeds from the sale of the notes will be used to buy more Bitcoin. The remaining funds may be allocated to corporate initiatives like strategic acquisitions.
MARA’s Influence in the Crypto Sector
MARA has been assertive in its approach to acquiring Bitcoin. In November, the company added 703 Bitcoin, bringing its monthly total to 6,474 BTC.
This purchase followed a $1 billion zero-coupon note sale earlier in the year, during which the company pledged $160 million to capitalize on price dips.
As of now, MARA’s holdings stand at 34,794 Bitcoin, valued at $3.3 billion. This makes it the second-largest corporate Bitcoin holder, trailing behind MicroStrategy, which has a portfolio worth $1.5 billion.
The company’s ultimate goal with these acquisitions could be to make a profit or focus on Bitcoin’s long-term value as a hedge against inflation.
Regardless, the upsized offering will accelerate MARA’s broader mission to expand its influence in the crypto sector. By using convertible debt instruments, MARA reduces immediate financial pressure and secures enough resources for sustainable growth. This strategy could solidify its position as a key player in Bitcoin mining.
