Miner MARA sells 15,000 bitcoins, raises $1.1 billion in cash to repurchase convertible bonds

MARA Holdings, a U.S. publicly listed mining company, announced on Thursday that it sold 15,133 bitcoins between March 4 and March 25, cashing in approximately $1.1 billion, and will use the proceeds to repurchase zero-coupon convertible bonds maturing in 2030 and 2031 to reduce debt and strengthen financial flexibility.
According to an official statement, MARA amended its digital asset management strategy on March 3 to allow the company to sell bitcoins held on its balance sheet, whereas the previous policy was limited to selling newly mined bitcoins. At the time of the policy adjustment, MARA held 53,822 bitcoins, of which 28% had been used for financial operations such as lending and collateral.
The so-called “zero-coupon convertible bonds” refer to a type of bond issued by the company that does not pay interest during the holding period but can be converted into company stock under specific conditions. The issuance price of these bonds is usually below par value (i.e., “issued at a discount”), and for investors, profits come from the discount and the appreciation of the converted stock.
MARA’s operation took advantage of the proceeds from the bitcoin sale to buy back these bonds at a price below par value. According to a repurchase agreement reached through private negotiations, MARA will repurchase bonds maturing in 2030 with a par value of $367.5 million for $322.9 million; and bonds maturing in 2031 with a par value of $633.4 million for $589.9 million.
These two transactions are expected to officially settle on March 30 and 31, bringing a total cash saving of $88.1 million (before transaction costs), equivalent to a repurchase at a 9% discount to par value.
After the repurchase is completed, MARA still has $632.5 million in 2030 bonds and $291.6 million in 2031 bonds remaining outstanding.
MARA CEO Fred Thiel stated, “This transaction enhances our financial flexibility and expands our strategic options as we are transitioning from a pure bitcoin mining business to digital energy and AI/high-performance computing infrastructure.”