30s Summary

Mara Holdings has raised $1 billion through the issuance of senior convertible notes, primarily to purchase Bitcoin. These notes, convertible into stock in 2028, were sold to substantial investors. Approximately 20% of the raised amount ($199m) will be used for loan repayments, and the remainder will be invested in the company’s growth, including further Bitcoin purchases. The move follows MicroStrategy’s raise of $2.6bn through note sales for buying Bitcoin. Meanwhile, Mara posted lower-than-expected Q3 earnings but enjoyed a 34.5% year-on-year revenue increase.

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Mara Holdings, a company that’s into cryptocurrency mining and the blockchain, has successfully raised a whopping $1 billion. They raised this cash by issuing what’s known as senior convertible notes (a fancy term for a type of loan that can be converted into stock). This big pile of money is mainly going to be used to buy Bitcoin – yeah, you read that right!

These senior convertible notes were sold to big-money investors, and those investors can look forward to converting these notes into stock in 2028 if they feel like it. The catch is that the price they’ll get is much higher than Mara’s current stock price.

About $199 million (which is about 20% of the money raised) will be used to cover upcoming loan repayments. The rest of the cash will be used to fuel the company’s growth, make key investments, and (of course) buy more Bitcoin.

This move is pretty similar to what MicroStrategy did recently when they raised their own note sales to $2.6 billion for buying Bitcoin. This has got people pretty excited about Bitcoin potentially hitting the $100,000 mark.

Mara’s official announcement stated that out of the $980 million net proceeds, $199 million will be used to repay part of its existing loan due in 2026. The remaining money will be spent on strategic purchases as well as serving as working capital and, naturally, on buying more Bitcoin.

Mara’s CEO, Fred Thiel, is bullish on the future of Bitcoin mining. He explained in a July conference that he thinks the Bitcoin mining industry will do really well under a Trump presidency. This aligns neatly with Mara’s focus on investing big in Bitcoin.

However, it was not all roses for Mara. They posted third-quarter earnings that missed analysts’ estimates which resulted in a drop in their stock price of 9.1% in after-hours trading. But they’re not too worried, as their revenue grew by 34.5% compared to last year, hitting $131.6 million.

There’s a silver lining though. On Nov. 11, when Bitcoin was closing in on $90,000, Mara’s stock jumped 30%, which has contributed to a rise of 10% in the company’s share price since the beginning of the year.