MARA drops following $850 fundraise announcement

Shares of bitcoin miner MARA Holdings tumbled this morning following its announcement that it plans to raise $850 million through a private sale of 0% convertible senior notes due in 2032. MARA will use the proceeds to partly acquire more bitcoin.

The stock was down more than 9% by midmorning.

MARA is the second-largest corporate bitcoin holder, with 50,000 bitcoin.

“MARA expects to use up to $50 million of the net proceeds from the sale of the notes to repurchase a portion of its existing 1.00% convertible senior notes due 2026,” the company said in the press release. 

The remainder of the proceeds will be used to acquire additional bitcoin and for general corporate purposes, “which may include working capital, strategic acquisitions, expansion of existing assets, and repayment of additional debt and other outstanding obligations.”