**MARA Secures $950 Million in Convertible Notes to Expand Bitcoin Holdings**
MARA Holdings, Inc. has successfully completed a private offering of $950 million in 0.00% convertible senior notes due in 2032. This announcement was made on July 28, 2025, following the closure of the offering on July 25, 2025, which generated approximately $940.5 million in net proceeds after fees. The company plans to utilize a significant portion of these funds to acquire additional Bitcoin, alongside other corporate purposes.
The offering includes a 13-day option for buyers to purchase up to an additional $200 million in notes. Of the net proceeds, around $18.3 million was allocated to repurchase $19.4 million of MARA’s 2026 convertible notes, while $36.9 million was designated for capped call transactions aimed at minimizing potential shareholder dilution.
MARA intends to use the remaining funds for various corporate needs, including working capital, strategic acquisitions, expansion of existing assets, and repayment of outstanding debts. The company has the option to redeem the notes after January 15, 2030, provided its stock trades at least 30% above the conversion price for a specified duration. Investors may also have the right to demand redemption under certain conditions, such as stock price declines or corporate changes.
The initial conversion rate for the notes is set at 49.3619 shares of MARA’s common stock per $1,000 principal amount, translating to an initial conversion price of approximately $20.2585 per share. This rate is subject to adjustments based on specific events.
The capped call transactions are designed to limit dilution, with a cap set at $24.14, approximately 40% above MARA’s recent trading price. The notes, which mature in 2032, do not pay interest and are convertible under certain conditions. It is important to note that hedge unwinding by 2026 noteholders could lead to short-term stock volatility, potentially impacting the market price of both the common stock and the notes.
In summary, MARA’s strategic move to raise $950 million through convertible notes highlights its commitment to expanding its Bitcoin holdings and enhancing its corporate capabilities.
**FAQ**
**What is the purpose of MARA’s $950 million convertible note offering?**
MARA’s offering aims to raise funds primarily for acquiring additional Bitcoin, as well as for general corporate purposes such as working capital, strategic acquisitions, and debt repayment.
