Key Takeaways
- MARA is set to offer $850 million in convertible senior notes due in 2030, with an option for an additional $150 million.
- The firm said it intends to use most of the proceeds to buy Bitcoin.
- MARA recently warned the U.S. government to place more emphasis on Bitcoin and digital assets.
MARA (formerly Marathon Digital), the largest public Bitcoin mining company, has announced increasing its offering to $1 billion from $700 million.
The move follows a successful $1 billion offering of senior convertible notes from the company, over half of which was used to buy Bitcoin.
$850 Million in Convertible Senior Notes
According to a news release on Dec. 2, MARA upsized its senior note offering to $850 million and announced granting users the option to buy an additional $150 million in notes.
The offering is expected to close on Dec. 4, 2024, pending customary conditions.
MARA estimates that the net proceeds from the sale of the notes will be approximately $835.1 million, or approximately $982.5 million if initial purchasers exercise their full option.
The Bitcoin miner said it plans to use $48 million of the funds to repurchase approximately $51 million of its outstanding 2026 convertible notes.
MARA said the remainder of the net proceeds would be used to acquire additional Bitcoin and for general corporate purposes, including working capital, strategic acquisitions, repayment of additional debt, and other outstanding obligations.
The firm does not expect the notes to gain interest other than special interest in limited circumstances, and the principal amount of the notes is not expected to increase.
The notes, which will mature in 2030, can be converted into cash, shares, or a combination of the two.
The move marks MARA’s strategy to better its balance sheet by replacing soon-due liabilities with longer-term debt while also continuing to prioritize digital assets.
MARA’s Bitcoin Hunger
The move follows MARA’s recent purchase of 6,474 BTC for over $600 million.
The purchase was funded by a successful $1 billion offering of senior convertible notes, which had proposed using $615 million to shop for Bitcoin.
MARA previously reported that its year-to-date Bitcoin yield per share had increased by 36.7%, highlighting the digital asset’s growing vitality in its business.
The miner holds 34,794 Bitcoins valued at around $3.3 billion, making it the second-biggest corporate holder of Bitcoin. In first place, MicroStrategy holds a whopping 402,100 total BTC, worth over $40 billion at current prices.
MicroStrategy chairman Michael Saylor recently urged Microsoft’s board of directors to join its strategy of buying up Bitcoin, claiming it could be a huge positive for its balance sheet.
A Warning for the U.S.
MARA recently issued a warning to the U.S. Government on its need to back Bitcoin.
The firm highlighted the country’s reserve of 200,000 Bitcoin, just slightly ahead of China with 190,000 BTC.
The Bitcoin miner warned that the digital asset sector could soon become more important than physical reserves, fearing that America’s huge gold reserve will soon be worth less.
“Historically, gold has been regarded as the premier store of value, but it faces growing challenges in the digital era,” MARA said.
Adding: “As a physical asset, it is inefficient for global transactions, and its supply is difficult to audit accurately.”
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
