MARA Holdings Upsizes Convertible Notes Offering by $150M Amid Overwhelming Investor Demand

As a seasoned researcher with a penchant for digital assets and a knack for following market trends, I find MARA’s recent move to increase its zero-coupon convertible notes offering from $700 million to $850 million quite intriguing. The company’s decision to allocate a significant portion of the estimated net proceeds towards bitcoin acquisition is a strategic play that aligns with my observation of the growing institutional interest in Bitcoin.

MARA Holdings (MARA) has amplified the size of its earlier announced offering of convertible notes, now set at a total of $850 million, up from the original $700 million.

Additionally, the initial buyers now have the opportunity to increase their investment from $105 million to $150 million. This offering, which is exclusively for qualified institutional investors, is anticipated to conclude on November 20th.

These notes set to mature on March 1, 2030, do not earn standard interest, but they can be redeemed as cash, stocks of MARA’s common shares, or a mix of both, at MARA’s option.

To start with, the opening purchase price is roughly around $25.91, representing a 42.5% higher value compared to MARA’s present share price of $18.18.

Approximately $833 million is projected as the total earnings, out of which about $199 million is earmarked to buy back $212 million worth of MARA’s 2026 convertible notes. The remaining funds will be dedicated towards purchasing bitcoin (BTC), expanding assets, and catering to general corporate needs.

MARA ranks as the second-largest public company in possession of Bitcoin, with a holding of approximately 27,562 coins. This declaration follows recent acquisitions of Bitcoin by other corporate entities such as MicroStrategy (MSTR) and Semler Scientific (SMLR).

MARA’s shares are up nearly 2% in pre-market trading after falling nearly 14% on Monday.