MARA Holdings Announces $700M Convertible Notes Offering to Acquire Bitcoin

Bitcoin MARA Holdings Metaplanet

Author

Hongji Feng

Author

Hongji Feng

About Author

Hongji is a crypto and tech reporter. He graduated from Northwestern University's Medill School of Journalism with a Bachelor's and a Master's. He has previously interned at HTX (Huobi Global),...

Author Profile

Share

Copied

Last updated:

November 18, 2024 13:30 EST

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more

MARA Holdings, Inc. revealed a $700 million private offering of convertible senior notes on Monday to support its strategy for acquiring Bitcoin and restructuring its operations.

According to the company’s recent press release, MARA intends to use the proceeds primarily for acquiring additional Bitcoin, repurchasing 2026 convertible notes, and general corporate purposes.

MARA Holdings’ $700 Million Notes Offering

The notes, set to mature in 2030, are unsecured and will carry semi-annual interest starting March 2025.

The company retains the right to redeem portions of the notes after 2028 under specific conditions.

This offering also allows holders to convert the notes into cash, MARA common stock, or a combination of both.

Conversion will be restricted to certain events or periods until late 2029, after which it will be open until the maturity date.

According to the statement, up to $200 million of the proceeds are designated to repurchase MARA’s existing convertible notes due in 2026.

The remaining funds are allocated for acquiring Bitcoin and general operational expenses, including potential debt repayment and asset expansion.

The company anticipates that activity from holders of the 2026 notes could affect its stock price.

Those with hedged positions may unwind these during the repurchase, potentially increasing trading volumes and influencing share valuations.

“The notes will be offered and sold to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act,” the release reads.

Metaplanet to Raise $11.3 Million for Bitcoin Acquisition

Metaplanet recently announced plans to raise $11.3 million through a third series of ordinary bonds to support its Bitcoin acquisition.

The Japanese investment firm is issuing 1.75 billion yen worth of bonds with a 0.36% annual interest rate, set for redemption in November 2025.

Metaplanet’s director guarantees the bonds, which are not directly collateralized.

However, the land and building of Hotel Royal Oak Gotanda, owned by its subsidiary Wen Tokyo, serve as security for the bondholders.

Metaplanet’s Bitcoin holdings increased to 1,018 BTC, reflecting a $28 million valuation gain.

According to Bitcoin Treasuries, this has brought the company’s total Bitcoin investments to over $64 million.