MARA Holdings Announces $700M Convertible Notes Offering to Expand Bitcoin Holdings

MARA Holdings Announces $700M Convertible Notes Offering to Expand Bitcoin Holdings
MARA Holdings Announces $700M Convertible Notes Offering to Expand Bitcoin Holdings

CentBit.Online – Crypto & Blockchain Expert Bangladesh

MARA Holdings, Inc. has unveiled plans for a $700 million private offering of convertible senior notes to bolster its Bitcoin acquisition strategy and streamline operations. The initiative, announced on Monday, underscores MARA’s commitment to integrating Bitcoin into its corporate framework while managing existing financial obligations.

Key Details of MARA Holdings’ $700M Notes Offering

  • Purpose: Proceeds will be directed towards purchasing additional Bitcoin, repurchasing existing 2026 convertible notes, and addressing general corporate needs.
  • Terms:
    • The notes are unsecured, maturing in 2030, with semi-annual interest payments beginning in March 2025.
    • MARA retains the option to redeem portions of the notes after 2028, subject to specific conditions.
    • Holders can convert the notes into cash, MARA common stock, or a combination, with restricted conversion periods until late 2029.
  • Allocation:
    • $200 million is earmarked for repurchasing 2026 notes.
    • Remaining funds will support Bitcoin acquisition, operational expenses, and potential debt repayment or asset expansion.

The repurchase of the 2026 notes is expected to impact MARA’s stock price, as hedged positions are likely to be unwound, potentially increasing trading activity and influencing valuations.

“The notes will be offered and sold to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act,” the company stated.

Metaplanet Joins the Bitcoin Acquisition Movement

In a related development, Metaplanet, a Japanese investment firm, has announced plans to raise $11.3 million (1.75 billion yen) through its third series of ordinary bonds for Bitcoin purchases.

Highlights of Metaplanet’s Offering

  • Bond Details:
    • Annual Interest Rate: 0.36%.
    • Redemption Date: November 2025.
    • Guaranteed by Metaplanet’s director, with the land and building of Hotel Royal Oak Gotanda, owned by its subsidiary Wen Tokyo, serving as collateral.
  • Bitcoin Growth:
    • Metaplanet’s Bitcoin holdings now stand at 1,018 BTC, reflecting a $28 million valuation gain.
    • The firm’s total Bitcoin investments exceed $64 million, according to Bitcoin Treasuries.

Bitcoin’s Institutional Momentum

MARA Holdings’ and Metaplanet’s strategic moves highlight the growing trend of institutional adoption of Bitcoin as a store of value and financial tool. With these significant investments, both companies are positioning themselves as key players in the evolving cryptocurrency ecosystem.

For the latest updates on institutional Bitcoin investments and market trends, stay connected to CentBit.Online—your premier source for blockchain and cryptocurrency expertise in Bangladesh.

Leave a Comment

Comments

No comments yet. Why don’t you start the discussion?

Leave a Reply

Your email address will not be published. Required fields are marked *