MARA Holdings, a major player in Bitcoin mining, just got almost $1 billion to keep buying more BTC. The company is already one of the biggest holders of Bitcoin in the world, and it is using the new money to buy even more. The move strengthens MARA’s bet that Bitcoin will go up in value over time.
MARA Holdings got $950 million from a zero-percent convertible note offering. They plan to use most of that money to buy more Bitcoin. The company, which already has 50,000 BTC worth almost $6 billion, is sticking with its plan to build a crypto treasury.
What is MARA going to do with the $950 million it raised?
MARA Holdings, one of the biggest publicly traded Bitcoin mining companies, just finished a $950 million sale of convertible senior notes with a 0.00% interest rate that will mature in 2032. According to the company’s announcement on Monday, most of that money, around $940.5 million after expenses, will go straight into buying more Bitcoin.
If the underwriters use their full option, the offering could even grow to $1.15 billion. Some of the money will also be used to pay off $19.4 million in older notes that are due in 2026 and to pay for capped call transactions that are meant to keep existing shareholders from losing value.
Why is MARA putting so much money on Bitcoin?
MARA has made it clear: they are all in on Bitcoin. MARA keeps what it mines instead of selling it like other miners do to pay for things. The company now has about 50,000 BTC, which is worth almost $6 billion. MARA is the second largest company in the world that owns Bitcoin, after MicroStrategy.
Their strategy of putting their treasury first shows that they have a lot of faith in Bitcoin’s value over the long term. MARA is putting itself in a better position to profit even more if the crypto market goes up again by doubling down with this latest round of funding.
What does this mean for their stock and plans for the future?
MARA shares fell a little on Monday, closing at $17.16, down 0.52%, but investors are keeping a close eye on them. The capped call transactions in the deal were set at $24.14 per share, which is 40% more than the stock’s reference price. This could mean more money if prices go back up, as per a report.
On August 7, MARA will release its next earnings report. The company will probably talk more about its Bitcoin holdings, mining output, and plans for how to spend the money it raised.
MARA’s aggressive buying of Bitcoin shows that it is in it for the long haul and is betting big that it will pay off.
Also read: Bitcoin’s 4-Year Cycle Is Dead, Says Bitwise CIO, but the Upside isn’t
