MARA Holdings Inc. (NASDAQ:MARA) shares fell 2.95% during the Friday pre-market trading session following the company’s announcement of a proposed private offering.
What Happened: The company disclosed its intention to offer $850 million of 0.00% convertible senior notes due 2032 in a private offering to institutional buyers. The underwriters will have a 13-day option to buy an additional $150 million worth of the notes.
The net proceeds, potentially totaling $50 million, will be used in part to repurchase a portion of its outstanding 1.00% convertible senior notes due 2026. The remaining funds will go toward acquiring more Bitcoin and supporting general corporate activities.
As of March 31, the company held $196.2 million in cash and cash equivalents, and by June 30, it owned a total of 49,940 Bitcoin (CRYPTO: BTC). It is scheduled to report its second-quarter financial results on July 29.
Why It Matters: MARA, one of the largest publicly traded Bitcoin mining firms, is poised to gain from broader Bitcoin's rally. As of June 30, it held nearly 50,000 Bitcoin on its balance sheet, making its stock highly responsive to fluctuations in the cryptocurrency market.
Earlier this month, MARA Holdings announced its ambitious target to achieve 75 exahashes by the end of 2025, marking a 40% jump from 2024.
Besides its Bitcoin exposure, MARA has a sizable short interest of approximately 26%, making it a potential short squeeze candidate if Bitcoin's rally continues and regulatory developments turn favorable for the crypto market.
The company is set to report its financial results for the second quarter on July 29, with analysts predicting earnings of 63 cents per share and revenue of $218.45 million.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
