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MIAMI - MARA Holdings, Inc. (NASDAQ:MARA), a $7 billion market cap company with a high volatility profile (Beta 6.55), announced Wednesday it intends to offer $850 million in convertible senior notes due 2032 to qualified institutional buyers under Rule 144A of the Securities Act. According to InvestingPro data, the company already carries $2.64 billion in total debt and shows signs of potential difficulty with interest payments.
The digital energy and infrastructure company, which has shown impressive revenue growth of 40.57% over the last twelve months, will grant initial purchasers an option to buy up to an additional $150 million in notes within a 13-day period after issuance. The offering remains subject to market conditions and other factors.
According to the company’s press release statement, the notes will be unsecured, senior obligations that are not expected to bear regular interest, except in limited circumstances. Any special interest would be payable semi-annually beginning February 1, 2026, with the notes maturing on August 1, 2032.
The notes will be convertible into cash, MARA common stock, or a combination of both, at the company’s election. Conversion will be limited to specific events and periods prior to May 1, 2032, after which they can be converted anytime until two trading days before maturity.
MARA plans to use up to $50 million of the proceeds to repurchase a portion of its existing 1.00% convertible senior notes due 2026. The remainder will fund capped call transactions, bitcoin acquisitions, and general corporate purposes.
In connection with the offering, MARA expects to enter into privately negotiated capped call transactions with initial purchasers or their affiliates. These transactions are designed to reduce potential dilution to common stock upon conversion of the notes.
The company noted that the notes and related common shares will not be registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption. For deeper insights into MARA’s financial health and detailed analysis, including 12 additional ProTips and comprehensive metrics, check out the Pro Research Report available on InvestingPro.
In other recent news, Marathon Digital Holdings has been the focus of several significant developments. UBS raised its price target for Marathon Digital to $203 from $175, citing higher refining earnings and adjusting its second-quarter 2025 earnings per share estimate to $3.03, which is below the Street consensus of $3.48. Piper Sandler also increased its price target for the company to $26, maintaining an Overweight rating due to Marathon Digital’s focus on bitcoin mining. Additionally, Marathon Digital announced the appointment of Nir Rikovitch as Chief Product Officer, who will lead product strategy and commercialization efforts. The company is targeting a hashrate of 75 exahash per second by the end of 2025, marking over 40% growth from 2024 levels. In June, Marathon Digital won 211 blocks, a decrease from May due to weather-related issues and other operational challenges. Furthermore, Marathon Digital has partnered with TAE Power Solutions to develop a high-frequency responsive load management system, aiming to create a 10MW clean energy storage network. These initiatives highlight Marathon Digital’s ongoing efforts to enhance its operational capabilities and strategic positioning in the market.
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