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MIAMI - MARA Holdings, Inc. (NASDAQ:MARA), a cryptocurrency mining company with a market capitalization of $6.19 billion, announced on Wednesday the pricing of its upsized offering of $950 million in 0.00% convertible senior notes due 2032, with an option for initial purchasers to purchase up to an additional $200 million. According to InvestingPro data, the company has been quickly burning through cash, making this offering particularly significant for its operations.
The zero-interest notes will be sold to qualified institutional buyers under Rule 144A of the Securities Act, with closing expected on July 25, 2025. The notes will be unsecured, senior obligations that mature on August 1, 2032, unless earlier converted, repurchased or redeemed.
Noteholders may convert their holdings into cash, MARA common stock, or a combination at the company’s election. The initial conversion rate is set at 49.3619 shares per $1,000 principal amount, subject to adjustments.
MARA anticipates net proceeds of approximately $940.5 million, or $1.14 billion if the additional purchase option is fully exercised. The company plans to use about $18.3 million to repurchase approximately $19.4 million of its existing 1.00% convertible notes due 2026, with the remainder allocated to capped call transactions costing $36.9 million, bitcoin acquisitions, and general corporate purposes. This financing comes at a crucial time, as InvestingPro analysis shows the company’s current ratio at 0.79, indicating its short-term obligations exceed its liquid assets.
In connection with the offering, MARA entered into capped call transactions with initial purchasers or their affiliates, which are expected to reduce potential dilution from conversions. The cap price is initially set at $24.14 per share, representing a 40% premium over MARA’s volume-weighted average price on July 23.
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.
This information is based on a press release statement from the company. For a comprehensive analysis of MARA’s debt structure and financial health metrics, including 14 key ProTips and detailed valuation models, visit InvestingPro, where you can access the complete Pro Research Report covering what really matters for informed investment decisions.
In other recent news, MARA Holdings, Inc. announced its plan to offer $850 million in convertible senior notes due 2032 to qualified institutional buyers. The company has also provided an option for initial purchasers to buy an additional $150 million in notes within a 13-day period after issuance. Piper Sandler has raised its price target for MARA Holdings to $26, maintaining an Overweight rating, citing the company’s focus on bitcoin mining. UBS also increased its price target for MARA to $203, attributing the rise to higher refining earnings and adjusting its second-quarter 2025 earnings per share estimate to $3.03. Additionally, Marathon Digital Holdings appointed Nir Rikovitch as Chief Product Officer to enhance the company’s product strategy and commercialization efforts. These developments reflect ongoing strategic and financial activities within MARA Holdings.
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