MARA to rise another $700 Million Convertible Senior Notes at 0% to buy more Bitcoin
Posted: Dec 02, 2024
- Mara Holdings, Inc. (NASDAQ: MARA) is offering $700 million in 0.00% convertible senior notes due 2031 in a private offering
- The notes can be converted into cash, shares of MARA's common stock, or a combination of both
- Proceeds will be used to acquire bitcoin, repurchase existing convertible notes due 2026, and for general corporate purposes
- The offering is subject to market conditions and other factors, and there is no guarantee of completion
- MARA is a global leader in digital asset compute that focuses on the energy transformation
- Forward-looking statements have been made about the offering and the company's future plans
- The offer of the notes and shares of MARA's common stock have not been registered under the Securities Act or other securities laws
- The notes will be offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act
What do people on Reddit think?
🚨 Reddit sentiment: mixed/negative - While there is an acknowledgment of MARA following MSTR's strategy and potential demand for Bitcoin, the majority of comments express skepticism and question the logic behind the financial strategy, raising concerns about borrowing at zero interest and buying at market highs. Summarized comments: - MARA aims to emulate MSTR by raising $700 million in Convertible Senior Notes at 0%. - Some question the decision to raise $700 million and suggest larger amounts humorously. - Demand for Bitcoin (BTC) is noted, with speculation on BTC reaching 100k before the end of the year. - Concern is expressed about who is lending MARA money at zero interest, with speculation on market strategies that profit from this. - Some comments are skeptical about buying at market highs. - The strategy of using 0% Convertible Notes implies that MARA's Bitcoin should trade at a premium compared to the market. - Repeated critique of similar strategies leading to skepticism. Stock tickers discussed: $MARA, $MSTR
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