MARA to Issue $700M in Convertible Senior Notes, Shares Decrease 5%

MARA Holdings (MARA) has unveiled plans for a private offering of $700 million in convertible senior notes maturing in 2030. The offering is intended for qualified institutional buyers, with an additional option for purchasers to acquire up to $105 million in notes.

The company intends to use up to $200 million of the funds to repurchase part of its outstanding 2026 convertible notes. The remainder will be directed toward further bitcoin (BTC) acquisitions, business expansion, strategic acquisitions, and addressing debt obligations.

The convertible notes, which come due in 2030, can be exchanged for either cash or shares, at MARA’s discretion. The interest will be paid semi-annually, though the exact terms of the offering are still to be finalized.

Investors didn’t react favorably to the news, with MARA’s share price dropping by 5%, reaching $19.97 in pre-market trading.

MARA’s move comes shortly after similar announcements from other companies, including MicroStrategy (MSTR), underscoring a growing trend of major firms raising funds for bitcoin purchases and business expansion.