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Key Notes
- The zero coupon convertible notes allow investors to exchange bonds for MARA stock at predetermined prices if shares rise.
- MARA's stock dropped 12% following the announcement, suggesting negative investor sentiment toward the debt strategy.
- Up to $50 million will repay existing debt while remaining funds target Bitcoin reserves and power infrastructure expansion.
MARA Holdings, Inc. announced on July 23 that it intends to raise, subject to market conditions and other factors, $850 million by selling a special type of bond called a “zero coupon convertible note” to institutional investors, maturing in 2032. This move builds on the company’s ongoing strategy of increasing its bitcoin reserves, upgrading mining infrastructure, and reinforcing its position as a leading player in the cryptocurrency industry.
This will be the second issuance of convertible notes, in less than a year, for $850 million; the first one was in December 2024. At the time of the announcement, their stock on Nasdaq dropped almost 12% in less than 24 hours, indicating that investors received this news negatively.
MARA Holdings, Inc. Announces Proposed Private Offering of $850 Million of Zero Coupon Convertible Senior Noteshttps://t.co/vsJOqj2Svj
— MARA (@MARA) July 23, 2025
Details of the new $850 Million Offering
The company’s new debt is a bond that doesn’t pay interest during its life. Instead, investors buy the bonds at a discounted price and get the full amount back when the bonds mature in 2032. This is called a zero coupon note.
The bond is also convertible, which means investors can choose to exchange their bonds for MARA stock at a predetermined price if MARA’s share price increases. This gives bondholders the option to become shareholders in the future, benefiting if the company does well. If they don’t convert, they get their cash back when the bond matures.
MARA may also sell up to an additional $150 million of these bonds if there is strong demand, which would bring the total raised to $ 1.15 billion.
MARA Balances Debt Repayment with Bitcoin Expansion Plans
MARA will use up to $50 million from this offering to repurchase some of its earlier debt. The bulk of the new funds will be allocated to increasing its bitcoin BTC $118 287 24h volatility: 0.9% Market cap: $2.35 T Vol. 24h: $46.92 B reserves and for general company needs, including power infrastructure upgrades and potential acquisitions. According to their website, MARA holds more than 50,000 Bitcoin between direct mining and market purchases.
Since December 2024, MARA has focused on scaling up its bitcoin mining and direct bitcoin purchases. In December 2024, the firm spent $1.1 billion on more than 11,774 BTC, pushing its total holdings past 40,435 BTC. In August 2024, it held 26,200 BTC, ranking it second among public companies with the biggest bitcoin treasuries after Strategy.
Other funds from the past bond sale supported MARA’s energy transition, such as its acquisition of a wind farm in Texas, which helped lower electricity costs and reliance on traditional energy sources.
On the day, MARA reported mixed results for its mining business following the latest bitcoin halving, which reduced its mining rewards and revenue. In the last quarter, MARA’s revenue fell short of forecasts, resulting in a notable loss. Management attributed the decline to equipment failures, energy grid issues, and the effects of the halving.
MARA Holdings’ new $850 million fundraising, using zero-coupon convertible notes, reinforces its dual approach of acquiring bitcoin through both direct purchase and self-mining. The company is balancing the risks of debt, equity dilution, and bitcoin’s market swings as it continues to invest in mining capacity and renewable energy; however, this does not align with the preferences of its investors.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
José Rafael Peña Gholam is a cryptocurrency journalist and editor with 9 years of experience in the industry. He wrote at top outlets like CriptoNoticias, BeInCrypto, and CoinDesk. Specializing in Bitcoin, blockchain, and Web3, he creates news, analysis, and educational content for global audiences in both Spanish and English.
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