MARA Holdings is on the rise after announcing a new offering of $850 million in 0.00% convertible senior notes due in 2030. They plan to use these funds to buy back existing convertible notes and acquire more Bitcoin.
On Monday, shares of MARA Holdings Inc. (MARA), a Bitcoin mining company, took a hit. This came after they revealed a proposed private offering of $700 million in convertible senior notes. However, by late Tuesday, the company upsized the offering to $850 million due to strong demand. These notes will be sold privately to qualified institutional buyers.
Additionally, MARA Holdings has given initial purchasers a 13-day option to buy up to an extra $150 million of the notes. The offering is expected to close on November 20.
MARA plans to use about $199 million from the note sales to repurchase $212 million in existing convertible notes that are due in 2026. The rest of the money will go towards acquiring more Bitcoin.
Earlier this year, MARA Holdings took a "full HODL" approach. This means they keep all the Bitcoin they mine and occasionally make strategic purchases in the market. As of September 30, the company held a total of 26,747 Bitcoin.
The company aims to hit a target of 50 exahashes per second by mid to late December. They expressed confidence in their growth and have no plans to slow down. MARA Holdings is looking to expand further in both U.S. and international markets, with ambitious goals for their portfolio of owned and operated sites.
As of Tuesday, shares of MARA Holdings were up 4.36%, trading at $18.88, according to Benzinga Pro.