MARA Holdings, Inc. unveiled a $700 million private placement of convertible bonds on Monday to support its Bitcoin acquisition strategy and restructure its operations.
According to a recent press release from the company, MARA intends to use the proceeds primarily to raise additional Bitcoin, repurchase convertible bonds maturing in 2026 and for general corporate purposes.
The bonds, which mature in 2030, are unsecured and will bear semi-annual interest from March 2025. The company retains the right to redeem a portion of the bonds after 2028, subject to certain conditions.
This offering also allows holders to convert the bonds into cash, MARA common stock or a combination of both. The conversion will be limited to certain events or periods until the end of 2029, after which it will be available until maturity.
According to the statement, up to $200 million of the proceeds will be used to repurchase existing MARA convertible bonds maturing in 2026. The remaining funds will be used for Bitcoin acquisitions and general operating expenses, including potential debt repayment and asset expansion.
The company anticipates that the actions of holders of 2026 bonds may affect its share price. Those holding hedged positions may liquidate them during repurchases, potentially increasing trading volume and affecting share valuations.
“The bonds will be offered and sold to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act,” the release reads.
Metaplanet aims to raise $11.3 million for Bitcoin acquisition
Metaplanet recently announced plans to raise $11.3 million through a third series of ordinary bonds to support the Bitcoin acquisition. The Japanese investment firm is issuing 1.75 billion yen worth of bonds with an annual interest rate of 0.36%, scheduled to mature in November 2025.
The director of Metaplanet guarantees the bonds, which are not directly secured. However, the land and building of the Royal Oak Gotanda Hotel, owned by subsidiary Wen Tokyo, provide collateral for the bondholders.
Metaplanet’s Bitcoin stock rose to 1018 BTC, reflecting a valuation gain of $28 million. According to Bitcoin Treasuries, this brought the company’s total investment in Bitcoin to more than $64 million.
