The American mining company MARA (formerly known as Marathon Digital) has announced plans to raise up to $850 million through the issuance of convertible senior notes with a zero coupon, maturing in 2032. Additionally, MARA will offer investors an option for another $150 million, which could increase the total funding to $1 billion.
This is reported by Finway
Investments in Bitcoin and Bond Buybacks
The company intends to allocate the raised funds to several areas. Up to $50 million will be used to buy back a previous issuance of securities maturing in 2026 with an annual dividend of 1%. The remaining amount will be directed towards general corporate purposes, including increasing the Bitcoin portfolio.
The press release emphasizes that the new bonds do not provide for dividend payments, but they can be purchased at a discount to par value. The redemption of the securities will be made in cash, shares of Class A MARA, or a combination of both, depending on the terms of the agreement.
MARA’s Market Position and Investor Reaction
MARA ranks among the top four largest Bitcoin holders among public and private companies, trailing only a few leading players in the cryptocurrency space.
“Among public and private companies, the miner ranks fourth in terms of the volume of the first cryptocurrency under control.”
Despite ambitious plans, the news of additional capital raising caused the company’s shares to drop by over 9%. This is attributed to investor concerns about potential dilution of existing shareholders’ stakes.
Another example for MARA in its strategy of using debt instruments to acquire Bitcoins is Strategy, which remains the largest corporate owner of this cryptocurrency. At the same time, experts warn that such a financing model carries risks due to limited liquidity and high dependence on Bitcoin market volatility.
Despite a recent decline in operational metrics in June, MARA maintains plans to increase its hash rate to 75 EH/s by the end of 2025, highlighting the company’s long-term development strategy in the cryptocurrency mining sector.