FORT LAUDERDALE – MARA Holdings, Inc. (NASDAQ: MARA), a digital asset computing and energy transformation company, has completed an $850 million private offering of convertible notes, the company announced today. Currently valued at $8.39 billion, the company has seen remarkable growth, reporting a 131% increase in revenue over the last twelve months. According to InvestingPro analysis, MARA has a strong financial position with a current ratio of 4.0, indicating robust liquidity despite the rapid expansion phase. The notes due 2031 were offered to qualified institutional buyers and may provide additional proceeds of $150 million if the initial purchasers exercise their option within 13 days of the issuance date.

The net proceeds from the offering, which amount to approximately $835.1 million after discounts and commissions from the initial purchaser, are intended for various corporate purposes. Specifically, MARA plans to allocate approximately $48 million to repurchase its existing $51 million convertible notes due 2026. Data from InvestingPro shows that MARA operates with a moderate level of debt, with a debt-to-equity ratio of 0.22, suggesting prudent financial management. However, InvestingPro Tips suggests that the company is burning through cash quickly, making this funding crucial for future operations. Subscribers can access 16 additional ProTips and comprehensive analysis through the Pro Research Report. The remainder of the funds will be used to acquire more Bitcoin, support working capital, and potentially finance strategic acquisitions, asset expansions, debt repayments, and other obligations.

These 0.00% convertible bonds, which do not pay interest regularly, may pay special interest semi-annually beginning June 1, 2025 under certain conditions. They will mature on June 1, 2031 unless earlier redeemed, redeemed or converted in accordance with their terms. The initial conversion rate was set at approximately 28.9159 shares of MARA common stock per $1,000 principal amount of the notes, which corresponds to an initial conversion price of approximately $34.5830 per share. This rate can be adjusted in special circumstances.

The press release also notes that the repurchase of existing convertible notes due 2026 could cause holders who have hedged their stock price risk to unwind their hedge positions, which could potentially impact MARA’s common stock price. With a beta of 5.7, MARA stock exhibits significant volatility compared to the broader market. Based on InvestingPro’s fair value analysis, the stock appears to be trading close to its fair value while showing strong momentum with a return of 69% over the past year.

MARA has clarified that this press release does not constitute an offer to sell or a solicitation of an offer to purchase the Notes and that the Notes and any shares of MARA common stock issued upon conversion are not registered under the Securities Act or any state securities laws.

The Company’s forward-looking statements indicate plans for the use of net proceeds, but also recognize risks and uncertainties that could cause actual results to differ from expectations. The information is based on a press release.

In other recent news, Marathon Digital (NASDAQ:) Holdings reported quarterly revenue of $132 million and a pro forma adjusted EBITDA loss of $9 million, falling short of expectations. Barclays (LON:) initiated coverage on Marathon Digital, issuing an Equal-Weight rating and setting a $27.00 price target. The company’s strategic shift towards owning more mining assets has been highlighted by Barclays, and the company’s analysts see Marathon Digital as a compelling option for investors interested in the mining sector. Compass Point changed its stance on the company, changing its rating from “Buy” to “Neutral” while increasing its price target to $25.00.

Marathon Digital has expanded its operations, recently adding approximately 372 MW across three locations in Ohio. The company also successfully closed a $1 billion convertible senior note, reflecting strong institutional interest in Bitcoin exposure. Compass Point predicts that Marathon Digital will spend around $480 million to acquire 5,000 Bitcoin, with the goal of ending the year with around 34,000 Bitcoin on its balance sheet. The company also forecasts that Marathon Digital will reach 70 EH/s by the end of 2025, contributing to a FY25 adjusted EBITDA estimate of $657 million. These are the latest developments for Marathon Digital.

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