Record Bitcoin Production, $700M Convertible Notes Offering
MARA
Holdings, Inc. (NASDAQ: MARA), a
leading name in digital asset compute and blockchain technology and the biggest
Bitcoin miner from Wall Street, announced two significant updates on its
operations and financial strategy today (Monday).
These
developments underscore the company’s robust positioning in the cryptocurrency
and digital asset market, providing fresh insights for investors tracking MARA
stock and the broader market.
MARA Stock News: November
Bitcoin Mining Reaches Record Highs
MARA
Holdings revealed its November 2024 bitcoin production update, highlighting a
record-breaking performance in mining operations. The company achieved a 27%
month-over-month increase in blocks won, totaling 254, while bitcoin (BTC)
production rose by 26% to 907 BTC. This surge was driven by enhanced
operational efficiency and the deployment of additional mining rigs, increasing
MARA’s energized hash rate to 46.1 EH/s, a 15% improvement from October.
Fred Thiel, CEO, MARA, Source: LinkedIn
“November
was a record-breaking month for MARA, with our mining operations achieving
unprecedented levels of production. These results highlight the significant
strides we’ve made in scaling operations and optimizing performance,” Fred
Thiel, MARA’s chairman and CEO, noted.
“Our
BTC production grew 26% month-over-month to 907 BTC and energized hash rate
increased to 46.1 EH/s, a 15% increase over October,” Thiel added. “Notably, a
portion of our Bitcoin and hash rate was acquired outside of our own mining
pool. These results highlight the significant strides we’ve made in scaling our
operations and optimizing performance, reinforcing our leadership position in
the industry.”
MARA key highlights from
the report
- Year-to-date
(YTD) BTC mined:
8,563 BTC - Total
BTC holdings: 34,959
BTC, valued at $3.3 billion - Average
acquisition price for purchased BTC: $77,692 - YTD BTC
yield per share:
37.2%
MARA’s
hybrid strategy of mining and purchasing bitcoin provides flexibility to
capitalize on market conditions. The company acquired 6,474 BTC in November
alone, leveraging price declines to optimize acquisition costs. This dual
approach positions MARA to maintain a competitive edge while delivering
long-term shareholder value.
MARA’s November 2024 #Bitcoin Production Update is here:
– Energized Hash Rate Increased 15% to 46.1 EH/s
– Record 254 Blocks Won, a 27% Increase M/M
– 907 BTC Produced, a 26% Increase M/M
– Total BTC HODL: 34,959 BTC valued at $3.3B (spot: $95K)
– 12,965 BTC acquired YTD at…— MARA (@MARAHoldings) December 2, 2024
Recently,
the biggest publicly listed Bitcoin mining company on Wall Street emphasized
the importance of the United States strengthening its position in Bitcoin
holdings and mining operations, describing
it as a crucial aspect of national security amidst intensifying global competition.
Proposed $700 Million
Convertible Notes Offering
In a
separate announcement, MARA
Holdings detailed plans to raise $700 million through a private offering of
zero-coupon convertible senior notes due in 2031. The offering, subject to
market conditions, will also include an option for initial purchasers to
acquire an additional $105 million in notes.
Proceeds
from the offering will be allocated primarily toward acquiring additional
bitcoin and repurchasing the company’s existing convertible notes due 2026.
Remaining funds may be used for general corporate purposes, including strategic
acquisitions, expansion of assets, and debt repayment.
Today, we announced a proposed private offering of 0% convertible notes of $700 million + $105 million option. Proceeds to be used primarily to acquire bitcoin and repurchase existing 2026 convertible notes up to $50 million.https://t.co/S9kgfId4rp
— MARA (@MARAHoldings) December 2, 2024
“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 convertible notes due 2026 in privately negotiated transactions with the
remainder of the net proceeds to be used to acquire additional Bitcoin and for
general corporate purposes,” the company commented.
The notes,
expected to be convertible into MARA stock or cash, will not accrue interest.
Special interest, if applicable, will commence in mid-2025. The anticipated
reference price for conversion will be determined based on MARA stock’s
volume-weighted average price on the pricing date.
MARA has
also highlighted potential market activity linked to the repurchase of existing
notes. Hedged holders may unwind their positions, potentially impacting the
market price of MARA stock during the pricing period.
This is not
the first time MARA has undertaken such a move. Just two weeks ago, the company
announced
$850 million convertible note offerings.
- Principal
Amount: $850
million, with an option for initial purchasers to acquire an additional $150
million. - Conversion
Price: $25.91 per
share, representing a 42.5% premium over the U.S. composite volume-weighted
share price.
MARA Stock Outlook and
Investor Implications
These
updates arrive as MARA stock continues to attract interest among investors
navigating the cryptocurrency market. The company’s focus on operational
excellence and strategic financial management strengthens its position as a
leader in the blockchain sector.
Although
the information published in the report seemed positive, the market reacted
with a decline. On Monday, December 2, 2024, MARA stock opened on NASDAQ with a
6% drop, reaching an intraday low of approximately $25. Currently, one MARA
stock is trading at $25.85.
MARA stock price on Monday. Source: TradingView
It is worth
noting, however, that the stock remains close to mid-term highs, with the $23
level expected to serve as a significant support point.
MARA has
also reminded investors of potential risks, urging them to carefully review the
company’s latest filings with the SEC, including annual and quarterly reports.
The cryptocurrency and digital asset markets remain highly volatile,
emphasizing the importance of making informed trading and investment decisions.
Almost a
month ago, the
company reported a net loss of $124.8 million in the third quarter of 2024,
despite a 34.5% year-over-year revenue increase to $131.6 million. The loss was
primarily due to a $40 million rise in operational expenses, which overshadowed
the revenue growth.
About MARA Holdings
MARA
Holdings, Inc. (NASDAQ: MARA) is a global leader in digital asset compute,
leveraging innovative technologies to secure blockchain networks and transform
underutilized energy into economic value.
The company
continues to expand its presence in the digital asset space, making MARA stock
a focal point for analysts and investors tracking the intersection of
blockchain and financial markets.
Frequently Asked Questions
(FAQs), MARA Stock News
What is MARA’s current BTC
holding?
As of
November 30, 2024, MARA holds 34,959 BTC, valued at $3.3 billion.
How will the proceeds from
the $700 million notes offering be used?
Proceeds
will primarily fund bitcoin acquisitions, repurchase existing 2026 convertible
notes, and support corporate initiatives.
What was MARA’s BTC
production growth in November 2024?
MARA
achieved a 26% month-over-month growth in BTC production, mining 907 BTC in
November.
Is MARA stock impacted by
the proposed offering?
The
proposed offering may influence MARA stock’s market price due to activities
linked to hedged holders and derivative transactions. After the newest
announcements the stock price of MARA fell more than 6% on Monday, testing $25.7.
For the
latest MARA stock news, financial updates, and operational highlights, stay
connected with Finance Magnates’ updates.
MARA
Holdings, Inc. (NASDAQ: MARA), a
leading name in digital asset compute and blockchain technology and the biggest
Bitcoin miner from Wall Street, announced two significant updates on its
operations and financial strategy today (Monday).
These
developments underscore the company’s robust positioning in the cryptocurrency
and digital asset market, providing fresh insights for investors tracking MARA
stock and the broader market.
MARA Stock News: November
Bitcoin Mining Reaches Record Highs
MARA
Holdings revealed its November 2024 bitcoin production update, highlighting a
record-breaking performance in mining operations. The company achieved a 27%
month-over-month increase in blocks won, totaling 254, while bitcoin (BTC)
production rose by 26% to 907 BTC. This surge was driven by enhanced
operational efficiency and the deployment of additional mining rigs, increasing
MARA’s energized hash rate to 46.1 EH/s, a 15% improvement from October.
Fred Thiel, CEO, MARA, Source: LinkedIn
“November
was a record-breaking month for MARA, with our mining operations achieving
unprecedented levels of production. These results highlight the significant
strides we’ve made in scaling operations and optimizing performance,” Fred
Thiel, MARA’s chairman and CEO, noted.
“Our
BTC production grew 26% month-over-month to 907 BTC and energized hash rate
increased to 46.1 EH/s, a 15% increase over October,” Thiel added. “Notably, a
portion of our Bitcoin and hash rate was acquired outside of our own mining
pool. These results highlight the significant strides we’ve made in scaling our
operations and optimizing performance, reinforcing our leadership position in
the industry.”
MARA key highlights from
the report
- Year-to-date
(YTD) BTC mined:
8,563 BTC - Total
BTC holdings: 34,959
BTC, valued at $3.3 billion - Average
acquisition price for purchased BTC: $77,692 - YTD BTC
yield per share:
37.2%
MARA’s
hybrid strategy of mining and purchasing bitcoin provides flexibility to
capitalize on market conditions. The company acquired 6,474 BTC in November
alone, leveraging price declines to optimize acquisition costs. This dual
approach positions MARA to maintain a competitive edge while delivering
long-term shareholder value.
MARA’s November 2024 #Bitcoin Production Update is here:
– Energized Hash Rate Increased 15% to 46.1 EH/s
– Record 254 Blocks Won, a 27% Increase M/M
– 907 BTC Produced, a 26% Increase M/M
– Total BTC HODL: 34,959 BTC valued at $3.3B (spot: $95K)
– 12,965 BTC acquired YTD at…— MARA (@MARAHoldings) December 2, 2024
Recently,
the biggest publicly listed Bitcoin mining company on Wall Street emphasized
the importance of the United States strengthening its position in Bitcoin
holdings and mining operations, describing
it as a crucial aspect of national security amidst intensifying global competition.
Proposed $700 Million
Convertible Notes Offering
In a
separate announcement, MARA
Holdings detailed plans to raise $700 million through a private offering of
zero-coupon convertible senior notes due in 2031. The offering, subject to
market conditions, will also include an option for initial purchasers to
acquire an additional $105 million in notes.
Proceeds
from the offering will be allocated primarily toward acquiring additional
bitcoin and repurchasing the company’s existing convertible notes due 2026.
Remaining funds may be used for general corporate purposes, including strategic
acquisitions, expansion of assets, and debt repayment.
Today, we announced a proposed private offering of 0% convertible notes of $700 million + $105 million option. Proceeds to be used primarily to acquire bitcoin and repurchase existing 2026 convertible notes up to $50 million.https://t.co/S9kgfId4rp
— MARA (@MARAHoldings) December 2, 2024
“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 convertible notes due 2026 in privately negotiated transactions with the
remainder of the net proceeds to be used to acquire additional Bitcoin and for
general corporate purposes,” the company commented.
The notes,
expected to be convertible into MARA stock or cash, will not accrue interest.
Special interest, if applicable, will commence in mid-2025. The anticipated
reference price for conversion will be determined based on MARA stock’s
volume-weighted average price on the pricing date.
MARA has
also highlighted potential market activity linked to the repurchase of existing
notes. Hedged holders may unwind their positions, potentially impacting the
market price of MARA stock during the pricing period.
This is not
the first time MARA has undertaken such a move. Just two weeks ago, the company
announced
$850 million convertible note offerings.
- Principal
Amount: $850
million, with an option for initial purchasers to acquire an additional $150
million. - Conversion
Price: $25.91 per
share, representing a 42.5% premium over the U.S. composite volume-weighted
share price.
MARA Stock Outlook and
Investor Implications
These
updates arrive as MARA stock continues to attract interest among investors
navigating the cryptocurrency market. The company’s focus on operational
excellence and strategic financial management strengthens its position as a
leader in the blockchain sector.
Although
the information published in the report seemed positive, the market reacted
with a decline. On Monday, December 2, 2024, MARA stock opened on NASDAQ with a
6% drop, reaching an intraday low of approximately $25. Currently, one MARA
stock is trading at $25.85.
MARA stock price on Monday. Source: TradingView
It is worth
noting, however, that the stock remains close to mid-term highs, with the $23
level expected to serve as a significant support point.
MARA has
also reminded investors of potential risks, urging them to carefully review the
company’s latest filings with the SEC, including annual and quarterly reports.
The cryptocurrency and digital asset markets remain highly volatile,
emphasizing the importance of making informed trading and investment decisions.
Almost a
month ago, the
company reported a net loss of $124.8 million in the third quarter of 2024,
despite a 34.5% year-over-year revenue increase to $131.6 million. The loss was
primarily due to a $40 million rise in operational expenses, which overshadowed
the revenue growth.
About MARA Holdings
MARA
Holdings, Inc. (NASDAQ: MARA) is a global leader in digital asset compute,
leveraging innovative technologies to secure blockchain networks and transform
underutilized energy into economic value.
The company
continues to expand its presence in the digital asset space, making MARA stock
a focal point for analysts and investors tracking the intersection of
blockchain and financial markets.
Frequently Asked Questions
(FAQs), MARA Stock News
What is MARA’s current BTC
holding?
As of
November 30, 2024, MARA holds 34,959 BTC, valued at $3.3 billion.
How will the proceeds from
the $700 million notes offering be used?
Proceeds
will primarily fund bitcoin acquisitions, repurchase existing 2026 convertible
notes, and support corporate initiatives.
What was MARA’s BTC
production growth in November 2024?
MARA
achieved a 26% month-over-month growth in BTC production, mining 907 BTC in
November.
Is MARA stock impacted by
the proposed offering?
The
proposed offering may influence MARA stock’s market price due to activities
linked to hedged holders and derivative transactions. After the newest
announcements the stock price of MARA fell more than 6% on Monday, testing $25.7.
For the
latest MARA stock news, financial updates, and operational highlights, stay
connected with Finance Magnates’ updates.
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