Bitcoin mining company MARA Holdings announced today that it has closed its 0.00% convertible senior notes due 2030 worth $1 billion.
It also includes $150M of notes issued pursuant to an option exercised by the initial purchasers.
Over $900 million of the net proceeds was used to pay the costs incurred in connection with the offering, including discounts, commissions and estimated offering expenses.
MARA has stated in its publication that it intends to use nearly $190 million of the net proceeds to repurchase over $200 million of existing convertible notes due 2026.
Note Details and Conversion Terms
In the event that the new convertible notes are unsecured, senior obligations of MARA will not bear regular interest or even get to share in the overrall principal amount.
Under some circumstances, MARA may choose to pay special interest, i.e., failure to comply with reporting obligation.
The notes will mature in 2030, specifically on the first of March unless it is repurchased on an earlier date to the mature date, redeemed or converted. The notes may be redeemed by MARA in whole or in part on or after March 5, 2028, except in certain cases, subject to the conditions listed above.
Also, MARA common stock or a combination thereof at MARA’s election in each case automatically, by not less than the initial conversion rate of 38.5902 shares per $1,000 principal amount.
However, an equivalent price of approximately $25.91 per share, of a share of MARA common stock, based upon the Conversion Price.
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MARA’s purchases of its common stock in the market may increase the market price for such stock and could result in a higher effective conversion price for the new notes.
Significance and Strategic Implications
That one billion dollar convertible notes offering is a huge capital raise for the Holding company.
This is allowing the company to do things with the extra resources it has to execute its growth initiatives such as buying more Bitcoin and other general business purposes.
This successful result demonstrates MARA’s powerful position in the Bitcoin mining market and the ability to draw on the capital markets for supporting its strategic objectives.
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