MARA Holdings, Inc. has announced an $850 million offering of zero-coupon convertible senior notes due in 2031, primarily aimed at acquiring Bitcoin and repurchasing existing convertible notes due in 2026.

Approximately $48 million from this offering will be allocated to repurchase about $51 million in existing convertible notes due in 2026.

Following the closing of its second convertible note offering on December 5, 2024, Marathon Digital raised funds primarily for Bitcoin purchases and partially for repurchasing existing notes.

In the days following the offering, Marathon acquired approximately 1,423 BTC valued at $139.5 million, and the next day purchased an additional 1,300 BTC worth $130.66 million, totaling $270.16 million in Bitcoin over two days.

This fundraising effort highlights MARA's strategy to enhance its Bitcoin holdings and improve its financial structure through innovative financing.

Market analysts predict Bitcoin could reach $125,000 by the end of 2024 and potentially $200,000 by the end of 2025, driven by continued institutional inflows.

Institutional investors have played a significant role in Bitcoin's price movements this year, acquiring 683,000 BTC through U.S. Bitcoin ETFs and other means.

Currently, Marathon Digital's crypto wallet holds a total of 19,965 BTC, valued at approximately $2 billion.

The senior unsecured notes will not accrue regular interest or principal, but special interest may be applicable under certain conditions, paid semi-annually.

Remaining proceeds from the offering will be used for Bitcoin acquisition and general corporate purposes, including strategic acquisitions and debt repayment.

The notes are convertible into cash, MARA common stock, or a combination at MARA's discretion, maturing on June 1, 2031, unless converted or repurchased earlier.

The offering will be conducted privately for institutional buyers under Rule 144A of the Securities Act of 1933, with an additional option for purchasers to acquire $150 million in notes.