In an announcement made today, Bitcoin (BTC) mining firm MARA Holdings revealed plans to raise up to $850 million through a private offering of zero-coupon convertible notes due in 2032. A portion of the proceeds will be used to expand the company’s BTC holdings.
MARA Holdings Looks To Scale Bitcoin Reserves
Bitcoin continues to hit successive record highs, hitting a new all-time high of $123,218 on Binance on July 13. In response, corporate interest in the asset is accelerating.
Today, Nasdaq-listed MARA Holdings announced plans to raise $850 million. According to a filing with the US Securities and Exchange Commission (SEC), the private offering includes a $150 million upsell option, potentially bringing the total raise to $1 billion.
The offering targets qualified institutional investors, who will have the option to convert the notes into cash, MARA equity, or a combination of both. The notes will mature in August 2032.
Investors can also force MARA Holdings to repurchase the notes in 2030 if the company’s stock underperforms. Conversely, the company has the right to redeem the notes starting in January 2030, assuming its stock performs above a specified threshold.
Of the total amount raised, up to $50 million may be used to repurchase a portion of the company’s existing 1% convertible notes due in 2026 – improving MARA’s balance sheet. The remainder will go toward purchasing additional Bitcoin and supporting other “general corporate initiatives.”
Despite the announcement, MARA’s stock has declined 8.68% on the day, trading at $17.95 at the time of writing. Still, the stock is up over 7% on a year-to-date (YTD) basis.
According to data from CoinGecko, MARA Holdings currently holds 50,000 BTC in its treasury – worth approximately $5.9 billion – representing about 0.238% of the total Bitcoin supply. While still behind Strategy’s holdings, today’s news will help MARA further solidify its position as the second-largest publicly listed holder of Bitcoin.
Is BTC Heading Toward Supply Shock?
The recent surge in corporate adoption of digital assets – especially BTC – has rekindled speculations about a possible “supply shock” for the leading digital asset. Rapidly growing demand, coupled with declining supply may result in sharp price appreciation for BTC.
In a recent X post, Bitwise CIO Matt Hougan noted that since January 2024, Bitcoin exchange-traded products (ETPs) and corporate treasuries have collectively acquired 1.5 million BTC. During the same period, only 300,000 BTC have been newly mined – highlighting a widening demand-supply imbalance.
In a separate development, France-based Sequans Communications recently added 1,264 BTC to its balance sheet, bringing its total holdings to 2,317 BTC. At press time, Bitcoin is trading at $118,187, down 0.7% over the past 24 hours.
Featured image from Unsplash.com, charts from Yahoo! Finance and TradingView.com
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