MARA Holdings higher by 10% after selling $1.1 billion in bitcoin to fund debt buyback

The strategic move cuts debt, reduces dilution risk, and strengthens the balance sheet for expansion into AI and energy infrastructure, said the company.

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What to know:

• MARA Holdings (MARA) repurchased approximately $1.0 billion of convertible notes at about a 9% discount, capturing roughly $88 million in value, according to the company.
• The sale of 15,133 bitcoin funded the transaction, with remaining proceeds expected to enhance liquidity and support broader strategic initiatives.
• MARA shares were higher by 10% in premarket trading on Thursday.

MARA Holdings (MARA) sold 15,133 bitcoin for approximately $1.1 billion between March 4 and March 25 to fund a major balance sheet overhaul.

The company is using the proceeds to repurchase roughly $1.0 billion of its 0.00% convertible senior notes due 2030 and 2031 at a discount.

In total, MARA will buy back $367.5 million of its 2030 notes for $322.9 million and $633.4 million of its 2031 notes for $589.9 million. The discounted purchases, about 9% below par, will generate approximately $88.1 million in value, said the company.

MARA was higher by 10% in premarket trading.

Beyond the immediate savings, the transaction materially reshapes MARA’s capital structure. The repurchases will reduce its convertible debt by around 30%, cutting total outstanding convertible notes from about $3.3 billion to $2.3 billion. This also reduces the risk of future shareholder dilution associated with conversions.

“Our decision to sell a portion of our bitcoin holdings reflects a strategic capital allocation move designed to strengthen our balance sheet and position the company for long-term growth," said CEO Fred Thiel.

MARA now holds 38,689 BTC following the sale.

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