MARA Holdings, formerly known as Marathon Digital, announced plans to offer $700 million in 0.00% convertible senior notes due 2030 to qualified institutional buyers.
$700M Convertible Notes Offering
The company plans to use up to $50 million from the note sale to buy back part of its 2026 convertible notes through private deals. The rest of the funds will go toward acquiring more Bitcoin and general purposes like working capital, strategic acquisitions, asset expansion, and debt repayment. The company expects the notes to be issued with no interest, except in rare cases, and the principal amount is expected to remain unchanged. The notes, maturing in 2030, are convertible into cash, equity, or a combination of the two. This move will improve MARA's balance sheet by replacing short-term obligations with long-term debt while investing in digital assets.
MARA's Bitcoin Recommendations
MARA Holdings called on U.S. policymakers to take the lead in Bitcoin mining, emphasizing the asset's importance for national security and financial sovereignty. The company highlighted Bitcoin's finite supply, decentralization, and cross-border transferability, comparing it to gold as a store of value. MARA recommended the U.S. develop domestic Bitcoin mining infrastructure, prioritize renewable energy adoption, and reduce reliance on foreign ASIC chips.
Strategy Comparison with MicroStrategy
MARA's recent strategy aligns with MicroStrategy's approach, which involves issuing corporate debt to bolster Bitcoin reserves. This reflects a growing trend among businesses to accumulate digital assets using similar methods.
MARA Holdings' strategy of issuing convertible notes aims to strengthen the company's financial position and increase Bitcoin reserves, emphasizing the significance of digital assets in today's economy and aligning with global financial management trends.
