Hold onto your hats, crypto fans, because MARA Holdings, the big kahuna of Bitcoin mining on Wall Street, is making waves again! They've just nailed a whopping $850 million deal with their second round of convertible senior notes. What's the catch? There's no interest on these notes, which mature in 2031. And here's the fun part: they can morph into cash, company shares, or a mix of both at MARA's whim. Talk about flexibility!
In a thrilling update shared on December 5, MARA announced their plans to use this hefty sum to bulk up their Bitcoin stash and buy back some of their notes due in 2026. It's like a financial game of chess, with MARA making all the right moves.
The company is gunning to rake in net proceeds between $835 million to a cool $985 million, depending on how many notes they end up selling. From that pile, about $48 million will go towards repurchasing $51 million of their 2026 notes. The rest is earmarked for snapping up more Bitcoin—because why not?—and for general corporate shenanigans like expanding their empire and paying off debts.
This isn't MARA's first rodeo, either. They previously pulled off a $700 million zero-interest note offering due in 2030, and recently went on a Bitcoin shopping spree, snagging 6,474 BTC in November alone. They're not just hoarding cash; they're playing the long game with Bitcoin.
And here's the cherry on top: MARA now holds a jaw-dropping 34,794 BTC, with a value dancing around $3.3 billion, making them the second-largest corporate Bitcoin holder. They're hot on the heels of MicroStrategy, who just announced a massive Bitcoin buy themselves.
Investors seem to love MARA's bold moves. Their stock jumped 3.30% on December 5, closing at $25.96. Over the past month, MARA's stock has skyrocketed by nearly 60%, and they've seen a 13.2% growth since the start of the year. It's a wild ride, and MARA is leading the charge!
