MARA has completed its upsized private placement of $950 million aggregate principal amount of 0.00% convertible senior notes due 2032, with initial purchasers granted a 13-day option to buy up to an additional $200 million, according to a press release. Net proceeds totaled approximately $940.5 million.
The company used roughly $18.3 million of the proceeds to repurchase about $19.4 million of its 1.00% convertible notes due 2026 in privately negotiated transactions, and deployed $36.9 million to cover the cost of capped-call transactions entered into alongside the offering. MARA intends to apply the remaining funds toward additional bitcoin acquisitions and general corporate purposes.
Notes convert, at MARA’s election, into cash, common stock, or a combination thereof, initially at a rate of 49.3619 shares per $1,000 principal (approximately $20.2585 per share), subject to adjustment under customary conditions. This puts the conversion premium at 17.4% above MARA’s $17.25 close price on July 25.
Concurrent capped-call transactions, with an initial cap price of about $24.14 per share, are expected to mitigate dilution upon conversion and offset excess cash payments.
Read More: MARA to offer $850 million of zero-coupon convertible senior notes due 2032
At time of publication, MARA is up 3.2% during pre-market hours.
