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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.
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.
Fred Thiel, CEO, MARA, Source: LinkedIn
“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.
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