Bitcoin (BTC) mining juggernaut MARA Holdings today announced the successful completion of a $950 million upsized offering of zero-interest convertible senior notes. A portion of the proceeds will go toward accumulating additional BTC, with the remainder allocated to general corporate purposes.
MARA Holdings To Increase Bitcoin Exposure
In an announcement today, Florida-based Bitcoin mining firm MARA Holdings stated that it had raised $950 million. It is worth noting that the deal was upsized from an initial target of $850 million, reported last week.
Notably, the firm has granted initial purchasers a 13-day option to acquire an additional $200 million in convertible senior notes. After accounting for initial purchasers’ discounts and commissions, MARA received net proceeds to the tune of $940 million.
Of the $940 million received, around $18.3 million was used to repurchase $19.4 million in existing convertible notes due 2026. Similarly, roughly $36.9 million was deployed toward capped call hedges to mitigate potential dilution from future share conversions.
The remaining funds will be used toward buying more BTC and for other general purposes, such as strategic acquisitions, working capital, expansion of existing assets, and repayment of additional debt.
To explain, zero-interest convertible senior notes are debt securities that pay no interest but can be converted into company shares later. They’re considered “senior” because they have priority in repayment over other debts in the event of liquidation.
According to CoinGecko, MARA currently holds 50,000 BTC, valued at approximately $5.9 billion at current market prices. This represents about 0.24% of Bitcoin’s total circulating supply, placing it ahead of Twenty One Capital, which holds 37,230 BTC.
Today’s $950 million raise is expected to widen MARA’s lead over Twenty One Capital. However, the firm still trails Michael Saylor’s Strategy, which dominates with 607,770 BTC on its balance sheet.
MARA Holdings’ shares recorded slight pullback following the announcement, as they traded at $17 – down 1.42% on the day. Notably, the Nasdaq-listed firm’s stock has declined 6.85% over the past six months.
BTC Frenzy Among Corporates
That MARA Holdings had to upsize its $850 million offering shows the strong institutional interest in the world’s largest cryptocurrency by market cap. It underscores the recent trend of companies allocating significant sums toward increasing their BTC holdings.
Earlier this month – between July 14 and 19 – 21 companies added $810 million worth of BTC to their balance sheets. Some of the firms that bought BTC were Strategy, Metaplanet, Semler Scientific, and Sequans, among others.
Bitcoin’s recent bullish momentum also helped it overtake e-commerce giant Amazon in terms of total market cap. At press time, BTC trades at $118,058, down 0.6% in the past 24 hours.
Featured image from Unsplash.com, charts Yahoo! Finance from TradingView.com
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