MARA Holdings, the world’s largest Bitcoin mining company, announced plans to raise $850 million through zero-coupon convertible senior notes due 2032 to expand its existing treasury of 44,893 BTC.
According to its official press release, the Miami-based digital energy company expects to grant initial purchasers an additional $150 million option, potentially bringing the total offering to $1 billion.
MARA will allocate up to $50 million of net proceeds to repurchase existing 1.00% convertible senior notes due 2026, while dedicating the remainder to Bitcoin purchases, capped call transaction costs, and general corporate purposes.
The convertible notes will carry no regular interest payments and mature on August 1, 2032, with holders gaining conversion rights into cash, MARA common stock, or a combination at the company’s discretion.
Strategic Treasury Expansion Amid Mining Headwinds
The capital raise represents MARA’s response to mounting profitability pressures following Bitcoin’s April halving event, which cut mining rewards in half while energy and equipment costs continue to rise.
MARA’s Q1 2025 results revealed these industry challenges, with the company reporting a net loss of $533 million despite achieving a 30% increase in revenue to $214 million.
CEO Fred Thiel has previously advocated for a hybrid approach combining mining operations with strategic Bitcoin purchases during market declines to optimize acquisition costs.
“As a miner that mines and buys Bitcoin, the hybrid approach provides us significant flexibility to acquire Bitcoin at attractive prices,” Thiel stated in the company’s December 2024 report.
The strategy positions MARA alongside other major miners as they shift their operations, with Core Scientific facing potential divestiture of crypto assets following its $9 billion acquisition by CoreWeave, while HIVE Digital explores AI data center hosting to supplement its mining revenues.
MARA’s convertible note structure includes provisions that allow the company to redeem notes for cash after January 15, 2030, while holders retain repurchase rights if stock prices fall below specified conversion thresholds.
The company expects to enter capped call transactions with initial purchasers to mitigate potential dilution upon note conversion, utilizing established hedging mechanisms commonly employed in corporate convertible offerings.
Divergence in Digital Treasury Strategies as Corporate Adoption Accelerates
MARA’s Bitcoin-focused approach contrasts sharply with emerging trends in treasury diversification among public companies entering the digital asset space.
Over 273 companies now maintain Bitcoin on their balance sheets, up from 124 companies as of June, according to BitcoinTreasuries data. Yet, corporate strategies increasingly diverge from simple Bitcoin accumulation.
NYSE-listed Sequans Communications recently purchased 1,264 Bitcoin for $150 million, bringing its total holdings to 2,317 BTC as part of a pure Bitcoin treasury strategy similar to MARA’s approach.
Meanwhile, some firms have abandoned Bitcoin entirely in favor of Ethereum’s staking yield potential, with Bit Digital recently selling 280 BTC to build a treasury of over 100,000 ETH, targeting staking rewards.
BIT Mining also announced plans to raise $200$300 million for a Solana treasury, while other firms explore altcoin strategies including XRP, ADA, and emerging DeFi tokens, according to Animoca Brands Research.
However, growing skepticism has surrounded the sustainability of any digital asset treasury approach, with Glassnode’s James Check warning that “the Bitcoin treasury strategy has a far shorter lifespan than most expect.”
VanEck’s Matthew Sigel has similarly questioned the mechanics of Bitcoin treasury strategies, particularly criticizing at-the-market share issuance programs that can become dilutive when stock prices approach Bitcoin’s net asset value.
The class-action lawsuits filed against MicroStrategy for allegedly misleading investors about the profitability of crypto investments have introduced fresh uncertainty into the corporate treasury’s use of digital assets.
These contrasting developments have raised profound questions about whether corporate crypto adoption will lead to lasting financial innovation or a short-term speculative trend.
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