Story

MARA Holdings aims to raise $850 million through zero-coupon convertible bonds, maturing in 2032. This marks its second major fundraising effort in less than a year, following a similar move in December 2024. The funds will primarily support Bitcoin acquisitions and mining infrastructure upgrades.

Key Details of the $850M Offering

The company’s new bonds, called zero-coupon convertible notes, won’t pay interest. Instead, investors buy them at a discount and receive full value at maturity. Additionally, bondholders can convert them into MARA stock if share prices rise, offering potential equity upside.

If demand is strong, MARA may issue an extra $150 million, bringing the total to $1.15 billion.

How MARA Will Use the Funds

• Up to $50 million to repurchase existing debt.
• The rest will expand Bitcoin reserves, upgrade mining power infrastructure, and fund potential acquisitions.
• MARA already holds over 50,000 BTC from mining and market purchases.

Investor Reaction & Market Impact

Following the announcement, MARA’s stock dropped nearly 12% in 24 hours, signaling investor skepticism. The company’s recent financial performance has been mixed, with revenue declines due to mining halving effects, equipment failures, and energy grid issues.

Balancing Debt and Expansion

Despite risks, MARA continues investing in Bitcoin mining and renewable energy, including a recent Texas wind farm acquisition to cut electricity costs. However, the heavy reliance on debt financing raises concerns about equity dilution and Bitcoin’s volatility.