Mara Holdings, a cryptocurrency mining and blockchain technology firm, has completed the issuance of $1 billion in zero-coupon convertible senior notes due March 1, 2030. The company aims to utilize the funds to strengthen its position in Bitcoin investments and address operational needs.

Issued under Rule 144A of the Securities Act of 1933, these notes are exclusively available to institutional investors. With a conversion price set 42.5% above Mara’s recent stock trading value, they offer redemption opportunities starting in 2028.

Approximately 20% of the proceeds—equivalent to $199 million—will be directed towards repurchasing $212 million of Mara’s convertible notes due in 2026. The company’s remaining funds will support Bitcoin acquisitions, operational growth, and strategic investments.

This move mirrors a strategy employed by MicroStrategy, which has raised over $2.6 billion to acquire Bitcoin. Such initiatives have fueled optimism in the cryptocurrency market, with analysts speculating on Bitcoin’s potential to surpass $100,000.

Mixed Market Reaction

Mara’s announcement comes amidst a volatile period for the company. Following the release of its Q3 earnings report on November 12, the company experienced a 9.1% dip in after-hours trading.

The report highlighted a $0.34 per share loss, slightly worse than analyst expectations. Despite this, Mara’s year-over-year revenue increased by 34.5% to $131.6 million, though it fell short of the forecasted $148.1 million.

CEO Optimistic About Bitcoin Mining Growth

Fred Thiel, Mara’s chairman and CEO, shared his positive outlook on Bitcoin mining during the Bitcoin 2024 conference. Thiel suggested that the industry could thrive under a Trump administration, emphasizing favorable energy policies that could support Bitcoin mining operations.

While Mara’s stock has faced fluctuations, it has seen a 10% rise in value since the start of the year, driven by Bitcoin’s steady climb toward $98,000.