Mara Holdings, a prominent crypto mining entity listed on public markets, has revealed plans to raise up to $1 billion through the issuance of convertible senior notes. A portion of these funds are earmarked for future Bitcoin acquisitions.
A press release issued on Wednesday outlined that $850 million in notes will be offered to specific institutional investors, maturing in 2032. The offering also includes an option for purchasers to acquire an additional $150 million in principal, potentially pushing the total funding to the $1 billion mark.
The company anticipates allocating up to $50 million of the raised capital towards repurchasing a section of its existing 1.00% convertible senior notes, which are due in 2026. The balance of the proceeds will be directed towards covering the costs associated with capped call transactions, increasing its Bitcoin holdings (BTC), and supporting general business operations.
These notes represent senior unsecured obligations of Mara Holdings and will not accrue interest. However, the offering’s completion remains “subject to market and other conditions,” meaning there is no assurance the transaction will finalize or regarding the specific terms if it does proceed.
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Bitcoin as a Key Treasury Asset
This announcement arrives following Mara Holdings’ recent acquisition of a minority stake in Two Prime, an investment advisory firm overseeing $1.75 billion in assets. This strategic move is expected to significantly expand the amount of Bitcoin managed by Two Prime on behalf of Mara.
Reports from early June indicated that the company had increased its Bitcoin production by 35% in May, despite increasingly challenging mining conditions and a rising hashrate across the Bitcoin network.
Further, late May reports revealed that Mara Holdings’ annualized mining revenue had surpassed $752 million. This represents a new historic peak in Bitcoin mining revenue generated by the organization.
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Data from Bitcoin Treasures shows that Mara Holdings currently holds 50,000 BTC in its reserves. This positions them as the second-largest corporate Bitcoin holder, trailing only Strategy, the leading Bitcoin treasury firm globally, which holds 607,000 BTC.
The announcement is also made after reports in late March of Mara Holdings looking to offer up to $2 billion worth of stock in order to acquire further Bitcoin, a strategy mirroring that of Strategy. According to a regulatory filing, the company has reached an arrangement with significant institutional investors to facilitate the sale of up to $2 billion of its shares “from time to time.”
Mara stated, “We currently intend to utilize the net proceeds from this offering for various corporate purposes, encompassing the acquisition of bitcoin and funding working capital.”
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