2024

Rule

Bitcoin

<p>Mara Holdings, a cryptocurrency mining and blockchain technology firm, has completed the issuance of $1 billion in zero-coupon convertible senior notes due March 1, 2030. The company aims to utilize the funds to strengthen its position in Bitcoin investments and address operational needs.</p>
<p>Issued under Rule 144A of the Securities Act of 1933, these notes are exclusively available to institutional investors. With a conversion price set 42.5% above Mara’s recent stock trading value, they offer redemption opportunities starting in 2028.</p>
<p>Approximately 20% of the proceeds—equivalent to $199 million—will be directed towards repurchasing $212 million of Mara’s convertible notes due in 2026. The company’s remaining funds will support <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a> acquisitions, operational growth, and strategic investments.</p>
<p>This move mirrors a strategy employed by MicroStrategy, which has raised over $2.6 billion to acquire Bitcoin. Such initiatives have fueled optimism in the cryptocurrency market, with analysts speculating on Bitcoin’s potential to surpass $100,000.</p>
<h3 id="mixed-market-reaction">Mixed Market Reaction</h3>
<p><a href="https://ir.mara.com/news-events/press-releases/detail/1379/mara-holdings-inc-completes-1-billion-offering-of-0-convertible-senior-notes-due-2030" rel="noopener noreferrer nofollow" target="_blank">Mara’s announcement</a> comes amidst a volatile period for the company. Following the release of its Q3 earnings report on November 12, the company experienced a 9.1% dip in after-hours trading.</p>
<p>The report highlighted a $0.34 per share loss, slightly worse than analyst expectations. Despite this, Mara’s year-over-year revenue increased by 34.5% to $131.6 million, though it fell short of the forecasted $148.1 million.</p>
<h3 id="ceo-optimistic-about-bitcoin-mining-growth">CEO Optimistic About Bitcoin Mining Growth</h3>
<p>Fred Thiel, Mara’s chairman and CEO, shared his positive outlook on Bitcoin mining during the Bitcoin 2024 conference. Thiel suggested that the industry could thrive under a Trump administration, emphasizing favorable energy policies that could support Bitcoin mining operations.</p>
<p>While Mara’s stock has faced fluctuations, it has seen a 10% rise in value since the start of the year, driven by Bitcoin’s steady climb toward $98,000.</p>

Mara Holdings Raises $1 Billion to Acquire Bitcoin and Address Debt Obligations

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