MARA Holdings, a prominent player in the Bitcoin mining industry, has revealed its intention to secure $850 million through the issuance of zero-coupon convertible senior notes. These notes, set to mature in 2032, are aimed at bolstering the company’s existing Bitcoin reserves, which currently stand at 44,893 BTC.
According to the company’s statement, underwriters may be granted the option to purchase an additional $150 million in notes, potentially increasing the total capital raised to $1 billion. The Miami-based digital energy firm anticipates this will allow them to purchase further BTC.
MARA intends to allocate a portion of the proceeds, up to $50 million, to repurchase its outstanding 1.00% convertible senior notes due in 2026. The remaining funds will be used for Bitcoin acquisitions, costs associated with capped call transactions, and general corporate needs.
These convertible notes will not accrue regular interest and will reach maturity on August 1, 2032. Noteholders will have the option to convert their holdings into cash, MARA common stock, or a combination thereof, at the company’s discretion.
MARA Holdings, Inc. Announces Proposed Private Offering of $850 Million of Zero Coupon Convertible Senior Notes— MARA (@MARA) Strategic Treasury Expansion Amid Mining Headwinds
This capital-raising initiative comes as MARA faces increased pressure on profitability following the Bitcoin halving event in April, which reduced mining rewards by half while energy and equipment expenses continue to climb.
MARA’s financial results for the first quarter of 2025 reflected these challenges, with the company reporting a net loss of $533 million despite a 30% increase in revenue, reaching $214 million.
CEO Fred Thiel has previously expressed support for a blended strategy that combines mining operations with strategic Bitcoin purchases during market downturns, aiming to optimize acquisition costs.
“As a miner that mines and buys Bitcoin, the hybrid approach provides us significant flexibility to acquire Bitcoin at attractive prices,” Thiel stated in the company’s December 2024 report.
🧐 , CEO of Bitcoin miner , has suggested retail investors to adopt a “buy and hold” Bitcoin strategy. — Cryptonews.com (@cryptonews)
MARA’s approach aligns with that of other major miners who are adapting their operations. Core Scientific, for example, may divest its crypto assets following its acquisition by CoreWeave for $9 billion, while HIVE Digital is exploring AI data center hosting to supplement its mining revenue.
The structure of MARA’s convertible notes includes provisions allowing the company to redeem the notes for cash after January 15, 2030. Noteholders also have repurchase rights if the stock price falls below specified conversion thresholds.
The company intends to enter into capped call transactions with the initial purchasers to mitigate potential dilution upon note conversion, utilizing common hedging techniques used in corporate convertible offerings. Divergence in Digital Treasury Strategies as Corporate Adoption Accelerates
MARA’s focus on Bitcoin stands in contrast to the emerging trend of treasury diversification among public companies entering the digital asset space.
According to data from BitcoinTreasuries, over 273 companies now hold Bitcoin on their balance sheets, an increase from 124 companies in June. However, corporate strategies are increasingly moving beyond simple Bitcoin accumulation.
Sequans Communications, listed on the NYSE, recently acquired 1,264 Bitcoin for $150 million, bringing its total holdings to 2,317 BTC, pursuing a similar Bitcoin-centric treasury strategy to MARA.
🚀 NYSE-listed buys 1,264 Bitcoin for $150 million bringing total holdings to 2,317 as corporate adoption surges 120% since July 2024. — Cryptonews.com (@cryptonews)
Conversely, some firms have abandoned Bitcoin altogether in favor of Ethereum’s staking yield potential. Bit Digital recently sold 280 BTC to build a treasury of over 100,000 ETH, aiming to generate staking rewards.
BIT Mining has also announced plans to raise $200-$300 million for a Solana treasury, while other companies are exploring altcoin strategies involving XRP, ADA, and emerging DeFi tokens, according to research from Animoca Brands.
However, skepticism is growing regarding the long-term viability of any digital asset treasury approach. James Check of Glassnode has cautioned that the “Bitcoin treasury strategy has a far shorter lifespan than most expect.”
Matthew Sigel of VanEck has also questioned the mechanics of Bitcoin treasury strategies, particularly criticizing at-the-market share issuance programs that can lead to dilution when stock prices approach Bitcoin’s net asset value.
Class-action lawsuits against MicroStrategy, alleging that the company misled investors about the profitability of crypto investments, have introduced new uncertainty into the use of digital assets in corporate treasuries.
These diverse developments have sparked significant debate about whether corporate crypto adoption will result in lasting financial innovation or prove to be a short-lived speculative trend.