MARA Holdings announced a $1 billion bond offering that led to a decline in the company's stock price. Analysts revised their forecasts, although the stock still fell.
Bond Offering Announcement
On July 25, 2025, MARA Holdings stock saw a 1.01% drop after announcing a private offering of convertible senior notes worth up to $1 billion. The offering consists of $950 million in notes with an option for buyers to purchase an additional $200 million. These notes are due in 2032.
Shareholder Protection through Capped Call Transactions
MARA entered into capped call transactions with financial institutions to limit the potential dilution of company stock if the new notes are converted. The cap is set at approximately $24.14 per share, 40% higher than the stock's average price.
Analysts Adjust Price Targets
Analyst Ed Engel raised the price target for MARA shares from $9.50 to $18, changing his rating from 'Sell' to 'Neutral'. Despite the upgrade, the stock closed lower at $16.77. Investors are also monitoring Bitcoin prices, which often affect MARA's performance.
The decline in MARA Holdings stock reflects a combination of factors including the significant bond offering and fluctuations in the cryptocurrency market. The market may be anticipating how the company will progress following its second-quarter earnings report.
