MARA Holdings (MARA) has increased the size of its previously planned convertible note offering from $700 million to $850 million, driven by strong investor demand. The company has also raised the option for initial purchasers to acquire additional notes, boosting the offering from $105 million to $150 million, as detailed in a recent press release.
The offering, aimed at qualified institutional buyers, is set to close on November 20.
Key Details of the Offering
The MARA convertible notes will mature on March 1, 2030, and will bear no regular interest. Investors will have the option to convert the notes into cash, shares of MARA’s common stock, or a combination of both at the company’s discretion. The initial conversion price is set at approximately $25.91 per share, which represents a 42.5% premium over MARA’s current stock price of $18.18.
The company estimates net proceeds of $833 million, with $199 million allocated for the repurchase of its 2026 convertible notes. The remaining funds will be used for Bitcoin acquisitions, corporate expansion, and general business needs.
“MARA expects to use approximately $199 million of the net proceeds from the sale of the notes to repurchase $212 million in aggregate principal amount of its existing convertible notes due 2026 in privately negotiated transactions,” the company stated.
Aggressive Bitcoin Positioning
MARA, the second-largest publicly traded Bitcoin holder with 27,562 BTC, continues to position itself aggressively within the cryptocurrency space. Following the announcement, the company’s stock rose nearly 2% in pre-market trading, recovering slightly from a nearly 14% decline on Monday.
Bitcoin Holdings Growing Across the Industry
The move comes as other major Bitcoin holders, such as MicroStrategy and Metaplanet, also continue to expand their Bitcoin reserves.
On Monday, MicroStrategy, led by Michael Saylor, revealed it had acquired an additional $4.6 billion worth of Bitcoin. The company also announced plans to raise $1.75 billion through convertible notes to further bolster its Bitcoin holdings. As of now, MicroStrategy holds 331,200 BTC, purchased at an average price of $88,627, giving it an estimated $13.7 billion in unrealized profits. To fund future Bitcoin purchases, MicroStrategy plans to issue senior convertible notes with a 0% interest rate, maturing in December 2029.
Similarly, Metaplanet, a Japanese investment firm, recently announced it would raise $11.3 million through its third series of ordinary bonds to support its Bitcoin acquisitions. The firm is issuing 1.75 billion yen worth of bonds with a 0.36% annual interest rate, due for redemption in November 2025. While the bonds are not directly collateralized, the land and building of Hotel Royal Oak Gotanda, owned by Metaplanet’s subsidiary Wen Tokyo, are being used as security for bondholders. According to Bitcoin Treasuries, Metaplanet’s total Bitcoin holdings are now valued at over $64 million.
A Growing Trend Amid Macroeconomic Uncertainty
These moves reflect a broader trend of corporations increasing their Bitcoin holdings amid ongoing macroeconomic uncertainties, including rising inflation and geopolitical tensions. As a result, more corporate treasurers are exploring Bitcoin as a reserve asset.
Digital asset platform Abra has recently launched a service designed for companies seeking to hold cryptocurrencies on their balance sheets as reserve assets, further signaling the growing institutional adoption of Bitcoin in corporate portfolios.
