Bitcoin Miner MARA To Raise $700M For BTC Purchase

by

As a seasoned crypto investor with over a decade of experience under my belt, I find MARA Holdings’ move to raise $700M through convertible notes offering for Bitcoin purchase and growth quite intriguing. It’s reminiscent of Peter Schiff suggesting Social Security sell US Treasuries to buy Bitcoin – a suggestion that seems more like a joke now!

MARA Holdings has declared a private offering of convertible senior notes valued at $700 million, which are due in 2030. These notes can be bought by institutional investors who qualify, with an option to invest an extra $105 million. The raised funds will be utilized for Bitcoin acquisition, corporate growth, strategic purchases, and debt settlement.

MARA To Raise $700M Through Convertible Notes Offering for BTC Purchase and Growth

As an analyst, I’m sharing that MARA Holdings plans to issue $700 million worth of convertible senior notes maturing in 2030 in a private offering. These notes are intended for qualified institutional buyers exclusively. Notably, potential buyers will also have the opportunity to purchase an extra $105 million in these notes if they so choose.

This is really bold suggestion especially after Peter Schiff, a staunch Bitcoin skeptic, provocatively and sarcastically  suggested selling Social Security’s $2.7 trillion in US Treasuries to buy Bitcoin, claiming it could solve its funding crisis.

As a researcher, I’d rephrase that statement as follows:

Currently, Bitcoin mining is proving to be more financially rewarding than ever before. Miners are making strategic decisions, such as temporarily halting their activities or offloading some of their holdings, in order to maximize earnings during each cycle while anticipating a potential value surge of $100K.

By 2030, these convertible notes may be exchanged for either cash or shares at the discretion of MARA. Semi-annual interest payments are planned, but specifics regarding the terms are still under discussion.

Can MARA Replicate Metaplanet’s Success?

The news did not sit well with the market, with MARA shares down 5% to $19.97 in premarket trades.

The proposed approach mirrors the recent tactics used by MicroStrategy and Metaplanet of Japan for purchasing Bitcoin using debt. MARA continues to follow MicroStrategy’s “HODL” ideology, which means keeping all mined Bitcoins and continually buying more. For instance, the Japanese company Metaplanet has implemented a Bitcoin acquisition strategy similar to that of MicroStrategy, resulting in substantial growth in its Bitcoin returns.

The strategy employed by Metaplanet has almost doubled its worth since the beginning of this year, mirroring MicroStrategy’s dramatic rise of 2,200% when they invested in Bitcoin back in 2020. If Metaplanet continues to increase their holdings, they could potentially experience comparable increases in value.

Among publicly-traded Bitcoin mining companies, Marathon Digital stands first with a total of 27,562 Bitcoins in its treasury, making it one of the major Bitcoin holders in the industry, trailing closely behind MicroStrategy.

Read More

2024-11-18 17:16