MARA Holdings, Inc. Announces Pricing of Oversubscribed and Upsized Offering of Zero-Coupon Convertible Senior Notes due 2030
MARA Holdings has announced the pricing of $850 million in zero-coupon convertible senior notes due 2030, with an additional $150 million option available to initial purchasers. The notes, maturing on March 1, 2030, will be convertible into cash, shares, or a combination at MARA's election, with an initial conversion rate of 38.5902 shares per $1,000 principal amount. The company plans to use approximately $199 million of the net proceeds to repurchase existing 2026 convertible notes, with the remainder allocated for bitcoin acquisition and general corporate purposes. The offering, expected to close on November 20, 2024, represents a conversion premium of 42.5% over MARA's current stock price.
MARA Holdings ha annunciato il prezzo di 850 milioni di dollari in note convertibili senior zero-coupon con scadenza nel 2030, con un'opzione aggiuntiva di 150 milioni di dollari disponibile per i compratori iniziali. Le note, che scadranno il 1 marzo 2030, saranno convertibili in contanti, azioni o una combinazione a scelta di MARA, con un tasso di conversione iniziale di 38,5902 azioni per ogni 1.000 dollari di importo principale. L'azienda prevede di utilizzare circa 199 milioni di dollari dei proventi netti per riacquistare note convertibili esistenti del 2026, mentre il resto sarà destinato all'acquisto di bitcoin e a scopi aziendali generali. L'offerta, che si prevede si chiuderà il 20 novembre 2024, rappresenta un premio di conversione del 42,5% rispetto al prezzo attuale delle azioni di MARA.
MARA Holdings ha anunciado el precio de 850 millones de dólares en pagarés convertibles senior sin cupón con vencimiento en 2030, con una opción adicional de 150 millones de dólares disponible para los compradores iniciales. Los pagarés, que vencerán el 1 de marzo de 2030, serán convertibles en efectivo, acciones o una combinación a elección de MARA, con una tasa de conversión inicial de 38,5902 acciones por cada 1.000 dólares de monto principal. La empresa planea usar aproximadamente 199 millones de dólares de los ingresos netos para recomprar pagarés convertibles existentes de 2026, mientras que el resto se destinará a la adquisición de bitcoin y a fines corporativos generales. La oferta, que se espera cierre el 20 de noviembre de 2024, representa una prima de conversión del 42,5% sobre el precio actual de las acciones de MARA.
MARA Holdings는 2030년 만기 제로 쿠폰 전환 선급 채권 8억 5천만 달러 가격을 발표했으며, 초기 구매자에게는 추가로 1억 5천만 달러의 옵션이 제공됩니다. 이 채권은 2030년 3월 1일에 만기되며, MARA의 선택에 따라 현금, 주식 또는 이들의 조합으로 전환될 수 있으며, 초기 전환 비율은 1,000달러당 38.5902주의 주식입니다. 회사는 순 수익의 약 1억 9천 9백만 달러를 2026년 기존 전환 채권을 재구매하는 데 사용할 계획이며, 나머지는 비트코인 구매 및 일반 기업 운영 용도로 배정됩니다. 이번 공모는 2024년 11월 20일 마감될 예정이며, 현재 MARA 주식 가격에 대해 42.5%의 전환 프리미엄을 나타냅니다.
MARA Holdings a annoncé le prix de 850 millions de dollars d'obligations convertibles seniors sans coupon arrivant à échéance en 2030, avec une option supplémentaire de 150 millions de dollars disponible pour les acheteurs initiaux. Les obligations, qui arriveront à échéance le 1er mars 2030, seront convertibles en espèces, en actions ou en une combinaison à la discrétion de MARA, avec un taux de conversion initial de 38,5902 actions par 1 000 dollars de montant principal. La société prévoit d'utiliser environ 199 millions de dollars des produits nets pour racheter des obligations convertibles existantes de 2026, le reste étant alloué à l'acquisition de bitcoin et à des fins générales d'entreprise. L'offre, qui devrait se clôturer le 20 novembre 2024, représente une prime de conversion de 42,5 % par rapport au prix actuel des actions de MARA.
MARA Holdings hat die Preisgestaltung von 850 Millionen Dollar für NULL-Coupon-Umwandlungsschuldanleihen mit Fälligkeit 2030 bekannt gegeben, mit einer zusätzlichen Option von 150 Millionen Dollar, die für die Erstkäufer verfügbar ist. Die Anleihen, die am 1. März 2030 fällig werden, können nach Wahl von MARA in Bargeld, Aktien oder eine Kombination davon umgewandelt werden, wobei der anfängliche Umwandlungssatz 38,5902 Aktien pro 1.000 Dollar Nennbetrag beträgt. Das Unternehmen plant, etwa 199 Millionen Dollar der Nettoerlöse zum Rückkauf bestehender Wandelanleihen von 2026 zu verwenden, während der Rest für den Erwerb von Bitcoin und allgemeine Unternehmenszwecke vorgesehen ist. Das Angebot, das voraussichtlich am 20. November 2024 abgeschlossen wird, weist eine Umwandlungsprämie von 42,5 % gegenüber dem aktuellen Aktienkurs von MARA auf.
- Successful upsized offering of $850 million with potential additional $150 million
- Zero-coupon notes structure eliminates regular interest payments
- 42.5% conversion premium indicates strong market confidence
- Strategic debt restructuring through repurchase of 2026 convertible notes
- Potential dilution risk for existing shareholders upon conversion
- Additional debt obligation of up to $1 billion
- Early conversion or repurchase options could impact cash flow
Insights
This
The zero-coupon structure eliminates regular interest payments, improving cash flow management. The conversion terms, allowing flexibility between cash and stock settlement, provide MARA with strategic optionality. The
This financing move positions MARA for significant bitcoin accumulation during the current market cycle. With substantial proceeds earmarked for bitcoin purchases, this could strengthen MARA's position as a proxy for institutional bitcoin exposure. The timing aligns with growing institutional interest in crypto exposure through traditional financial instruments.
The oversubscribed nature of the offering demonstrates strong institutional appetite for bitcoin-related investments through conventional securities. The zero-coupon structure minimizes cash obligations while maintaining upside exposure to bitcoin's potential appreciation, creating an efficient vehicle for leveraged bitcoin exposure through a public company structure.
Proceeds to be used primarily to acquire bitcoin and repurchase existing convertible notes due 2026
Fort Lauderdale, FL, Nov. 18, 2024 (GLOBE NEWSWIRE) -- MARA Holdings, Inc. (NASDAQ: MARA) (“MARA” or the “Company”), a global leader in leveraging digital asset compute to support the energy transformation, today announced the pricing of its offering of
The notes will be unsecured, senior obligations of MARA. The notes will not bear regular interest, and the notes will mature on March 1, 2030, unless earlier repurchased, redeemed or converted in accordance with their terms. Subject to certain conditions, on or after March 5, 2028, MARA may redeem for cash all or any portion of the notes at a redemption price equal to
Holders of notes may require MARA to repurchase for cash all or any portion of their notes on December 1, 2027 or upon the occurrence of certain events that constitute a fundamental change under the indenture governing the notes at a repurchase price equal to
The notes will be convertible into cash, shares of MARA’s common stock, or a combination of cash and shares of MARA’s common stock, at MARA’s election. Prior to December 1, 2029, the notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date.
The conversion rate for the notes will initially be 38.5902 shares of MARA common stock per
MARA estimates that the net proceeds from the sale of the notes will be approximately
MARA expects to use approximately
In connection with any repurchase of the existing 2026 convertible notes, MARA expects that holders of the existing 2026 convertible notes who agree to have their notes repurchased and who have hedged their equity price risk with respect to such notes (the “hedged holders”) will unwind all or part of their hedge positions by buying MARA’s common stock and/or entering into or unwinding various derivative transactions with respect to MARA’s common stock. The amount of MARA’s common stock to be purchased by the hedged holders or in connection with such derivative transactions may be substantial in relation to the historic average daily trading volume of MARA’s common stock. This activity by the hedged holders could increase (or reduce the size of any decrease in) the market price of MARA’s common stock, including concurrently with the pricing of the notes, resulting in a higher effective conversion price of the notes. MARA cannot predict the magnitude of such market activity or the overall effect it will have on the price of the notes or MARA’s common stock.
The notes are being offered and sold to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act. The offer and sale of the notes and the shares of MARA’s common stock issuable upon conversion of the notes, if any, have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction, and the notes and any such shares may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. The offering of the notes is being made only by means of a private offering memorandum.
This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, the notes, nor shall there be any sale of the notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful under the securities laws of any such state or jurisdiction. Nothing in this press release shall be deemed an offer to purchase MARA’s existing 2026 convertible notes.
About MARA
MARA (NASDAQ:MARA) is a global leader in digital asset compute that develops and deploys innovative technologies to build a more sustainable and inclusive future. MARA secures the world’s preeminent blockchain ledger and supports the energy transformation by converting clean, stranded, or otherwise underutilized energy into economic value.
Forward-Looking Statements
Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the estimated net proceeds of the offering, the anticipated use of such net proceeds, and the anticipated closing of the offering. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including uncertainties related to market conditions and the completion of the offering, uncertainties related to the satisfaction of closing conditions for the sale of the notes, the other factors discussed in the “Risk Factors” section of MARA’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 28, 2024, as amended on May 24, 2024, the “Risk Factors” section of MARA’s Quarterly Report on Form 10-Q filed with the SEC on August 1, 2024, the “Risk Factors” section of MARA’s Quarterly Report on Form 10-Q filed with the SEC on November 12, 2024 and the risks described in other filings that MARA may make from time to time with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof, and MARA specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required by applicable law.
MARA Company Contact:
Telephone: 800-804-1690
Email: ir@mara.com
FAQ
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