MARA Holdings, Inc. Completes $850 Million Offering of Zero-Coupon Convertible Senior Notes due 2031
MARA Holdings has successfully closed an $850 million offering of zero-coupon convertible senior notes due 2031. The net proceeds of approximately $835.1 million will be used to:
- Repurchase about $51 million of existing 2026 convertible notes using $48 million
- Acquire additional bitcoin
- Fund general corporate purposes
The notes are convertible into cash, MARA common stock, or a combination thereof, with an initial conversion rate of 28.9159 shares per $1,000 principal amount, equivalent to a conversion price of $34.5830 per share. This represents a 40% premium over MARA's weighted average price of $24.7022 on December 2, 2024.
MARA Holdings ha concluso con successo un'offerta di obbligazioni senior convertibili zero coupon da 850 milioni di dollari che scadranno nel 2031. I proventi netti di circa 835,1 milioni di dollari saranno utilizzati per:
- Riacquistare circa 51 milioni di dollari di obbligazioni convertibili esistenti del 2026 usando 48 milioni
- Acquistare bitcoin aggiuntivi
- Finanziare scopi aziendali generali
Le obbligazioni sono convertibili in contante, azioni comuni MARA, o una combinazione di entrambi, con un tasso di conversione iniziale di 28,9159 azioni per 1.000 dollari di valore nominale, equivalente a un prezzo di conversione di 34,5830 dollari per azione. Questo rappresenta un premio del 40% rispetto al prezzo medio ponderato di MARA di 24,7022 dollari del 2 dicembre 2024.
MARA Holdings ha cerrado con éxito una oferta de bonos senior convertibles zero coupon por 850 millones de dólares que vencen en 2031. Los ingresos netos de aproximadamente 835,1 millones de dólares se utilizarán para:
- Recomprar alrededor de 51 millones de dólares de bonos convertibles existentes de 2026 utilizando 48 millones
- Adquirir bitcoin adicional
- Financiar propósitos corporativos generales
Los bonos son convertibles en efectivo, acciones ordinarias de MARA, o una combinación de ambos, con una tasa de conversión inicial de 28,9159 acciones por cada 1.000 dólares de monto principal, equivalente a un precio de conversión de 34,5830 dólares por acción. Esto representa una prima del 40% sobre el precio promedio ponderado de MARA de 24,7022 dólares el 2 de diciembre de 2024.
MARA Holdings는 2031년 만료되는 제로 쿠폰 전환 시니어 노트 8억 5천만 달러를 성공적으로 발행했습니다. 약 8억 3천5백10만 달러의 순수익은 다음과 같은 용도로 사용됩니다:
- 기존 2026년 만료 전환 노트 약 5천1백만 달러를 4천8백만 달러를 사용하여 재매입
- 추가 비트코인 구매
- 일반 기업 목적으로 자금 조달
이 노트는 현금, MARA 보통주 또는 둘의 조합으로 전환 가능하며, 초기 전환 비율은 1,000달러의 원금에 대해 28.9159주로, 주당 전환 가격은 34.5830달러입니다. 이는 2024년 12월 2일 MARA의 가중 평균 가격 24.7022달러보다 40%의 프리미엄을 나타냅니다.
MARA Holdings a réussi à clore une offre de notes senior convertibles à zéro coupon de 850 millions de dollars arrivant à échéance en 2031. Les produits nets d'environ 835,1 millions de dollars seront utilisés pour :
- Racheter environ 51 millions de dollars de notes convertibles existantes de 2026 en utilisant 48 millions
- Acquérir des bitcoins supplémentaires
- Financer des objectifs d'entreprise généraux
Les notes sont convertibles en espèces, en actions ordinaires de MARA, ou en une combinaison des deux, avec un taux de conversion initial de 28,9159 actions pour chaque tranche de 1.000 dollars de montant nominal, équivalent à un prix de conversion de 34,5830 dollars par action. Cela représente une prime de 40 % par rapport au prix moyen pondéré de MARA de 24,7022 dollars au 2 décembre 2024.
MARA Holdings hat erfolgreich ein Angebot von Nullkupon wandelbaren Senior Notes in Höhe von 850 Millionen US-Dollar abgeschlossen, die im Jahr 2031 fällig werden. Die Nettomittel von etwa 835,1 Millionen US-Dollar werden verwendet für:
- Rückkauf von rund 51 Millionen US-Dollar bestehender wandelbarer Notes aus dem Jahr 2026 mit 48 Millionen
- Erwerb zusätzlicher Bitcoin
- Finanzierung allgemeiner Unternehmenszwecke
Die Notes sind in Bargeld, MARA Stammaktien oder eine Kombination davon umwandelbar, mit einem anfänglichen Umwandlungsverhältnis von 28,9159 Aktien pro 1.000 US-Dollar Nennbetrag, was einem Umwandlungspreis von 34,5830 US-Dollar pro Aktie entspricht. Dies entspricht einem Aufschlag von 40 % auf den volumengewichteten Durchschnittspreis von MARA von 24,7022 US-Dollar am 2. Dezember 2024.
- Raised substantial capital of $835.1M through zero-coupon notes, eliminating regular interest payments
- Strategic debt restructuring by repurchasing $51M of 2026 convertible notes
- 40% premium on conversion price compared to current stock price
- Potential future dilution for shareholders upon note conversion
- Additional long-term debt obligation of $850M
- Early redemption options could force conversion at company's discretion
Insights
MARA's
The zero-coupon structure eliminates regular interest payments, preserving cash flow. The conversion option and redemption features provide flexibility, while the
The strategic timing aligns with bitcoin's recent price surge, though the hedging activities of 2026 note holders could create short-term price volatility in MARA's stock.
This financing move positions MARA advantageously in the competitive bitcoin mining landscape. The substantial capital raise at zero coupon demonstrates strong institutional investor confidence, particularly noteworthy given the volatile nature of crypto markets. The optional
The structured redemption dates in 2027 and 2029 offer strategic flexibility while protecting noteholder interests. The
Proceeds to be used primarily to acquire bitcoin and repurchase existing convertible notes due 2026
Fort Lauderdale, FL, Dec. 04, 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 closing on December 4, 2024 of its offering of
The net proceeds from the sale of the notes were approximately
The notes are unsecured, senior obligations of MARA. The notes will not bear regular interest and the principal amount of the notes will not accrete. MARA may pay special interest, if any, at its election as the sole remedy for failure to comply with its reporting obligations and under certain other circumstances, each pursuant to the indenture. Special interest, if any, on the notes will be payable semi-annually in arrears on June 1 and December 1 of each year, beginning on June 1, 2025 (if and to the extent that special interest is then payable on the notes). The notes will mature on June 1, 2031, unless earlier repurchased, redeemed or converted in accordance with their terms. Subject to certain conditions, on or after June 5, 2029, 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 June 4, 2027 and on June 4, 2029 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 are 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 March 1, 2031, the notes are 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 is initially 28.9159 shares of MARA’s common stock per
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 were 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 was 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 MARA’s use of the net proceeds 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 the 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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