📣 MARA Closed Its $1B Convertible Debt Round to Acquire Bitcoin
posted 21 Nov 2024
Marathon Digital Holdings (MARA) raised $1 billion to buy Bitcoin. In a November 21 announcement, the company focused on Bitcoin mining and digital asset computing said they had closed their 0% convertible senior notes offering due 2030.
MARA said the notes were sold in a private offering to persons believed to be qualified institutional investors.
MARA plans to use $199 million from the sale of notes to repurchase $212 million in convertible notes due 2026. The rest will be used for Bitcoin purchases and general corporate purposes, including working capital, acquisitions, and debt repayment.
The notes are unsecured and have no regular interest. MARA may pay special interest in some cases, starting in 2025. The notes mature in March 2030, but MARA can redeem them in 2028 if certain conditions are met. Holders can require MARA to repurchase their notes in 2027 or after certain events. If MARA calls the notes for redemption, they may adjust the conversion rate for holders.
MARA's notes are convertible into cash, MARA common stock, or a combination of both, at MARA's discretion. Before December 1, 2029, conversion is allowed only under certain conditions and at specific times. After that date, they can be converted anytime until the second scheduled trading day before maturity.
Salman Khan, the Chief Financial Officer at MARA, shared the news on X, saying the convertible debt round was the largest conducted by any Bitcoin miner. Over 2024, the company has raised around 50% of its capital from sources other than ATM (At The Market) offerings, which include stock and other financial tools and products.
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