Bitcoin Miner MARA's Stock Slides Pre-Market On $700M Convertible Note Proposal: Retail’s Divided

The company expects to use up to $200 million of the net proceeds from the sale of the notes to repurchase a portion of its existing convertible notes due 2026 in privately negotiated transactions.

Shares of MARA Holdings, Inc. ($MARA) were down over 7% in Monday’s pre-market session after the Bitcoin miner announced it intends to raise $700 million through convertible senior notes due 2030 in a private offering to qualified institutional buyers.

The company also expects to grant to the initial purchasers of the notes an option to purchase up to an additional $105 million aggregate principal amount of the notes.

The notes, which will be unsecured, senior obligations of the company, will bear interest payable semi-annually in arrears on March 1 and Sept. 1 of each year, beginning on March 1, 2025.

The company expects to use up to $200 million of the net proceeds from the sale of the notes to repurchase a portion of its existing convertible notes due 2026 in privately negotiated transactions while the remainder of the net proceeds may be used to acquire additional Bitcoin ($BTC.X) and for general corporate purposes.

This may include working capital, strategic acquisitions, expansion of existing assets, and repayment of additional debt and other outstanding obligations, it said.

MARA Holdings’ shares have cooled-off in recent days after surging on the back of a rise in Bitcoin prices following Donald Trump’s victory in the U.S. Presidential elections.

Recently, the firm announced the addition of approximately 372 megawatts (MW) of owned and operated compute capacity across three sites in Ohio.

The company said it has acquired the two operational data centers in Ohio with 222 MW of interconnect-approved capacity. The sites have 122 MW of capacity and interconnection approval to expand by another 100 MW, it added.

Following the fund-raising announcement, retail sentiment on Stocktwits continued to trend in the ‘neutral’ territory (52/100), albeit with a marginally higher score.

Retail followers of the ticker on Stocktwits were mixed in their opinions about the fund-raising announcement.

On a year-to-date basis, MARA Holdings shares are down over 8%.