30s Summary

MARA Holdings has increased its zero-coupon convertible notes offering from $700m to $850m in order to invest more in Bitcoin. With an initial conversion price of $25.91, the company plans to use about $199m of the proceeds to buy out its existing convertible notes due in 2026. The remainder will be used to buy more Bitcoin and expand the business. This move comes after companies MicroStrategy and Semler Scientific also announced plans to buy more Bitcoin.

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MARA Holdings has bumped up its zero-coupon convertible notes offering from $700 million to a cool $850 million. The plan? To buy even more bitcoin. They expect the net gain from this to be around $833 million.

Don’t know what a zero-coupon convertible note is? That’s okay. Basically, it’s a type of bond investors buy for less than its face value. After a certain period, the investor can change it into a specified number of the company’s common shares or cash – their choice. For this particular deal, MARA aren’t offering any regular interest, and they’ve set the initial conversion price at about $25.91. Given their current stock price is $18.18, it’s a pretty good deal for investors.

MARA is going to use around $199 million of the proceeds to buy out the $212 million of its existing convertible notes that are floating around and due in 2026. The rest of the money is going towards acquiring more bitcoin, expanding their assets, and other general business stuff.

This is impressive because MARA is already the second largest publicly traded holder of bitcoin, with a stash of 27,562 BTC. Their decision to up their game comes right after MicroStrategy and Semler Scientific, two other bitcoin behemoths, announced they were buying up more bitcoin too.

Got any MARA shares? Well, their shares are up nearly 2% in pre-market trading after taking a 14% hit on Monday. So, things are looking up!