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The biggest
Wall Street Bitcoin miner by market cap, MARA Holdings, Inc. (NASDAQ: MARA), has
successfully completed an $850
million offering of zero-coupon convertible senior notes. This marks one of
the largest such offerings in the digital asset sector this year.
MARA Raises $850 Million
in Zero-Coupon Notes for Bitcoin Push
The company
secured approximately $835.1 million in net proceeds after initial purchasers’
discounts and commissions. MARA plans to allocate $48 million to repurchase
existing convertible notes due 2026, with the substantial remainder targeted
for Bitcoin acquisitions and general corporate purposes.
The notes
feature distinctive terms, including zero regular interest and no principal
accretion. Holders can convert their notes into cash, MARA common stock, or a
combination thereof, at the company’s discretion. The initial conversion rate
is set at 28.9159 shares per $1,000 principal amount, equivalent to
approximately $34.58 per share – representing a 40% premium over recent trading
prices.
$850 million with zero interest. MARA has closed its second convertible note offering with 0% interest. The proceeds will primarily be used to acquire bitcoin and partially repurchase existing convertible notes due 2026.https://t.co/eepRdIPLnm
— MARA (@MARAHoldings) December 4, 2024
MARA
announced its convertible notes offering earlier this week, stating
plans to raise $700 million along with an additional $105 million. However,
the final amount turned out to be slightly higher. The company’s shares rose by
3.3% during Wednesday’s session on Wall Street, closing just under $26,
maintaining levels near five-month highs.
MARA has
included optional redemption rights starting June 5, 2029, subject to specific
price conditions, while noteholders can require repurchase on June 4, 2027, and
June 4, 2029. The company also granted initial purchasers a 13-day option to
acquire an additional $150 million in notes.
MARA Expands Renewable
Portfolio with Texas Wind Farm Acquisition
In a separate
move this week, MARA entered into a definitive agreement to acquire a wind farm
in Hansford County, Texas, marking a significant expansion of its sustainable
energy infrastructure. The facility features 240 MW of interconnection capacity
and 114 MW of operational wind generation capabilities.
The Fort
Lauderdale-based digital asset company plans to develop and operate a
behind-the-meter data center powered entirely by the site’s wind capacity,
effectively operating at zero-marginal energy cost. This strategic move aligns
with MARA’s broader initiative to transform underutilized sustainable resources
into economic value.
“This
acquisition serves as a blueprint for how the energy and data center sectors
can collaborate to create long-term value while advancing sustainability
initiatives,” said Fred Thiel, MARA’s Chairman and CEO.
“By
repurposing machines and energizing them with 100% renewable, zero-marginal
energy cost, we’re leveraging renewable resources that would have otherwise
been curtailed, reducing our bitcoin production costs through vertical
integration, and demonstrating MARA’s commitment to environmental stewardship.”
Nearly a
month ago, the
company reported a net loss of $124.8 million for the third quarter of 2024.
This occurred despite a 34.5% increase in revenue compared to the same period
last year, bringing total revenue to $131.6 million. The loss was largely
driven by a $40 million increase in operational expenses, which outpaced the
growth in revenue.
This article was written by Damian Chmiel at www.financemagnates.com.
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