MARA stock surges 11%

MARA stock soars 11 percent after raising 1B dollars via convertible notes

2024-11-21 by Ndaman Olayinka 3 minutes read
MARA stock soars 11 percent after raising 1B dollars via convertible notes

MARA, formerly Marathon Digital and the largest publicly traded bitcoin miner, announced on Thursday that its $1 billion offering of senior notes with 0% convertible interest due in 2030 had closed successfully.

This includes an overall allocation of $150 million that was fully exercised by the initial buyers on Tuesday, and the additional purchase was completed on Wednesday.

MARA announces $700 million convertible note sale

MARA Holdings stated that it would make convertible senior notes worth $700 million available to eligible institutional buyers in a private offering. The notes it would buy back with the proceeds would be due in 2026, while the senior notes it planned to offer would be due in 2030.

After fees were subtracted but before expenses, the sale's net proceeds came to about $980 million. Approximately $199 million of the proceeds will be used by MARA to buy back $212 million in principal on its current convertible notes that are due in 2026. The remaining money will be utilized for general company objectives, such as debt repayment and strategic acquisitions, as well as to buy more Bitcoin.

In accordance with Rule 144A of the Securities Act of 1933, the notes were offered for sale in a private offering to eligible institutional purchasers. According to the company statement, the move demonstrates MARA's continued plan to improve its financial standing and grow its business in the digital asset sector.

MARA's stock jumps

During the trading session on Thursday, MARA's stock (ticker MARA) increased by 11.13%. Since the election of pro-crypto President-elect Donald Trump, shares have increased by roughly 37.68% in the last month due to the spike in the price of Bitcoin.

At the time of publication, the stock was trading at $27.70 per share. Yahoo Finance estimates that MARA's market capitalization is close to $8 billion.

About MARA

One of the leading companies in blockchain technology and Bitcoin mining is Marathon Digital Holdings. The company's digital asset compute portfolio tackles energy transformation issues and supports Bitcoin's infrastructure. The business, which was formerly called Marathon Patent Group, changed its name to better reflect its emphasis on cryptocurrencies.

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