MARA Set to Raise Another $1 Billion to Buy Bitcoin

MARA is set to raise $1 billion by issuing new zero-interest convertible notes due in 2031, further doubling down on MicroStrategy’s strategy of stockpiling Bitcoin.

On Monday, MARA announced plans to issue $700 million in convertible notes, with an option for initial buyers to purchase an additional $105 million. Due to oversubscription, the offering was upsized to $850 million, with the option cap increased to $150 million.

MARA expects to close the offering on Wednesday and estimates net proceeds from the offering to total $835 million, or up to $982 million if the initial buyers fully exercise their option. It plans to allocate $48 million of these proceeds to repurchase existing convertible notes due in 2026. The remaining funds will be used to acquire more Bitcoin and for general corporate purposes.

This move mirrors MARA’s similar November offering, where it raised $1 billion through zero-coupon convertible notes due in 2030. Over the past two weeks, the company spent more than $600 million from that raise to purchase approximately 6,474 BTC from the market.

MARA isn’t alone in leveraging the debt market as Bitcoin’s price edges closer to the $100,000 milestone. Last month, MicroStrategy also raised $3 billion via convertible notes with zero coupon rate and acquired nearly 150,000 BTC from the market.

Core Scientific, another major player in the mining industry, announced on Monday that it had upsized its own zero-interest convertible notes offering from $500 million to $550 million. Unlike MARA, Core Scientific has shifted its strategy. Once a Bitcoin hodler in 2021, the company has become a strict “no-coiner” after exiting bankruptcy protection.