Source: financemagnates , 19/12/2024
MARA Holdings, Inc. (NASDAQ: MARA), the largest Bitcoin mining company on Wall Street by market cap, has successfully completed an initial offering of $850 million in zero-coupon convertible notes. This represents one of the largest such offerings in the digital asset sector this year.
MARA Raises $850 Million in Zero-Coupon Notes to Back Bitcoin
The company received approximately $835.1 million in net proceeds after discounts and commissions earned by early buyers. 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 attractive terms, including no regular interest and no capital appreciation. Noteholders may convert their notes into cash, MARA common stock, or a combination thereof, at the company’s discretion. The initial conversion price was set at 28.9159 shares per $1,000 of capital. That equates to about $34.58 per share — a 40% premium to recent trading prices.
MARA announced its convertible bond offering earlier this week, announcing plans to raise $700 million plus an additional $105 million. However, the final amount turned out to be slightly higher. The company’s shares rose 3.3% during Wednesday’s session on Wall Street, closing just below $26, holding near five-month highs.
MARA included optional redemption rights as of June 5, 2029, subject to certain price conditions, while bondholders can request repurchases on June 4, 2027 and June 4, 2029. The company also granted early buyers a 13-day option to acquire an additional $150 million in bonds.
Wall Street’s Bitcoin mining company has successfully closed an $850 million offering of zero-coupon convertible senior notes due 2031. The new funds will be used primarily to purchase more bitcoin and refinance existing debt.
MARA Expands Renewable Energy Portfolio with Texas Wind Farm Acquisition
In a separate move this week, MARA entered into a definitive agreement to purchase a wind farm in Hansford County, Texas. This represents a significant expansion of its sustainable energy infrastructure. The facility features 240 megawatts of interconnected capacity and 114 megawatts of operational wind power generation capacity.
The Fort Lauderdale-based digital asset company plans to develop and operate a behind-the-meter data center that will rely entirely on on-site wind energy and operate at virtually zero marginal energy costs. This strategic move aligns with MARA’s broader initiative to turn untapped sustainable resources into economic value.
“This acquisition is a model for how the energy and data center industries can work together to create long-term value while advancing sustainability initiatives,” said Fred Thiel, Chairman and CEO of Mara.
By repurposing machines and powering them with 100% renewable energy and zero marginal energy costs, we are leveraging renewable resources that would otherwise be reduced, reducing Bitcoin.” He added that Mara aims to reduce production costs through vertical integration, demonstrating its commitment to environmental stewardship.
About a month ago, the company reported a net loss of $124.8 million for the third quarter of 2024. This came despite a 34.5% year-over-year increase in revenue, bringing total revenue to $131.6 million. The loss was largely due to a $40 million increase in operating expenses, which outpaced revenue growth.
