Mara Holdings, one of the largest publicly traded crypto mining firms, said it intends to offer up to $1 billion worth of convertible senior notes, with a portion of the funds intended for Bitcoin purchases.
According to a Wednesday announcement, $850 million of notes will be offered to qualified institutional buyers due in 2032. The company will also grant buyers an option to purchase an additional $150 million in principal, bringing the potential total to $1 billion.
Up to $50 million of the proceeds is expected to be spent on repurchasing a portion of its existing 1.00% convertible senior notes due 2026. The remainder will be used to cover the costs of the capped call transactions, acquire additional Bitcoin (BTC) and fund general corporate purposes.
The notes will be senior unsecured obligations of Mara and will not bear interest. Still, the offer is “subject to market and other conditions,” with no guarantee that the deal will close or on what terms.
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The announcement follows Mara Holdings’ recent completion of a minority acquisition of Two Prime — an institutional investment adviser managing $1.75 billion in assets — in a deal that significantly increases the amount of Bitcoin that Two Prime manages on Mara’s behalf.
Early June reports revealed the company increased its BTC production by 35% in May despite growing mining difficulty and rising hashrate.
Late May reports also revealed that Mara Holding’s annualized mining revenue exceeded $752 million. This marked a new all-time high in Bitcoin mining revenue for the company.
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According to Bitcoin Treasures data, Mara Holdings keeps 50,000 BTC in its corporate coffers as of publication time. This makes the firm the second-biggest corporate Bitcoin holder after the world’s top Bitcoin treasury company, Strategy, with its 607,000 BTC.
The announcement also follows late March reports that Mara Holdings is looking to sell up to $2 billion in stock to buy more Bitcoin as part of a plan similar to Strategy’s. The company stated in a regulatory filing that it had agreed with major institutional investors for them to sell up to $2 billion worth of its stock “from time to time.”
“We currently intend to use the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin and for working capital,” Mara added.
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