- MARA raised $950M with zero interest notes to buy Bitcoin and expand operations.
- The notes convert to stock at $20.26/share, but dilution risk is capped with a $24.14/share ceiling.
- The move shows how crypto firms are using smart debt strategies to fuel growth without spooking shareholders.
MARA Holdings just wrapped up a big-money play, locking in a massive $950 million through a private sale of convertible senior notes. No interest on these notes either—yep, 0.00%. The deal closed July 25, and the company’s already putting the cash to work, scooping up more Bitcoin and building out their corporate game plan.
Of that $950M haul, MARA walked away with about $940.5 million after fees and commissions. Nearly $18.3M of that has already been used to buy back some older 2026 notes, and another chunk—$36.9M—was funneled into something called “capped call” deals. These are meant to reduce dilution if the notes ever convert into stock (more on that in a sec). The bulk of what’s left? It’s going toward Bitcoin purchases, infrastructure expansion, strategic takeovers, and paying down other stuff they owe.
What’s Up With These Fancy Notes?
So, what are these 2032 notes all about? Basically, MARA can choose whether to repay investors in cash, stock, or a mix of both. But conversion only kicks in before May 1, 2032, if certain conditions are met. After that, it’s fair game until just before maturity in August 2032.
The current conversion rate is about 49.36 shares per $1,000 in principal—translating to roughly $20.26 per share. Oh, and MARA can redeem the notes for cash after Jan 15, 2030, but only if its stock shoots 30% above the conversion price and hangs there for a bit. That part’s kinda tricky, but it’s a safety net for MARA in case the stock takes off.
The capped call, though, that’s where things get interesting. These transactions limit how much dilution can happen if the notes are converted into shares. MARA set the cap at $24.14 per share—about 40% above its average price on July 23. Smart move to keep shareholders happy (or at least less worried).
Why This Matters for Bitcoin and the Bigger Picture
This kind of raise—interest-free and with convertible debt—is becoming a go-to strategy for crypto giants. It gives them capital without immediately flooding the market with new shares. For MARA, it’s about bulking up on Bitcoin and growing their ops without draining the treasury.
With all eyes on institutional Bitcoin plays, especially thanks to ETFs and big-money buys, companies like MARA are racing to lock in capital and solidify their market positions. It’s no longer just about who mines the most BTC—it’s about who’s best at balancing their books and staying ahead of the game.
