MARA Acquires $1.5 Billion in Bitcoin Through Convertible Notes

Bitcoin mining firm MARA has acquired over $1.5 billion worth of Bitcoin in two months, financed through two convertible note issuances.

These purchases resulted in a more than 50% increase in the company’s Bitcoin reserves this quarter and nearly tripled its holdings since the beginning of the year.

MARA reported spending approximately $1.53 billion from the proceeds of the notes issued in November and December to purchase 15,574 Bitcoin at an average price of $98,529 per coin.

As of December 18th, the company’s Bitcoin holdings stood at 44,394 Bitcoin, up from 26,747 Bitcoin at the end of the third quarter.

MARA raised $1.925 billion from 0% convertible notes in November and December. Using the proceeds from its zero-coupon convertible notes offerings, MARA has acquired 15,574 BTC for ~$1.53 billion at ~$98,529 per #bitcoin and repurchased ~$263 million in aggregate principal amount… pic.twitter.com/ycGRk9BYfv
— MARA (@MARAHoldings) December 19, 2024

The company also disclosed repurchasing $263 million of its 2026 convertible notes. It plans to allocate remaining funds from the financing for further Bitcoin acquisitions.

At an estimated value of $100,000 per Bitcoin, MARA’s holdings are valued at approximately $4.45 billion. The company reported returns of 22.5% on its Bitcoin investments this quarter and 60.9% year-to-date.

The funding was secured through two senior convertible note offerings totaling $1.925 billion. On November 21st, MARA issued $1 billion in notes maturing in 2030, yielding net proceeds of $980 million.

These notes carried a conversion price of $25.91 per share, representing a 42.5% premium over the trading price before the announcement.

On December 4th, the company raised $835.1 million through $850 million in notes maturing in 2031, with a conversion price of $34.58, a 40% premium over the trading price on December 2nd.

Following the funding, MARA quickly expanded its Bitcoin reserves. On November 22nd, the company announced the acquisition of 5,771 Bitcoin at an average price of $95,554 per coin. By December 10th, its holdings had risen to 40,435 Bitcoin.

Other Bitcoin and cryptocurrency mining firms also made notable moves in December.

Hut 8 announced the acquisition of 990 Bitcoin on December 19th, while Riot Platforms purchased $510 million worth of Bitcoin between December 10th and 12th.

CleanSpark issued $500 million in convertible notes on December 13th but clarified the proceeds would not be used for Bitcoin purchases.

MARA’s acquisitions reflect its strategy to solidify its position in the Bitcoin mining sector, leveraging financing methods to support its growth objectives.