MARA Holdings Sells 15,133 BTC Worth $1.1B to Fuel Debt Buyback

Bitcoin mining and infrastructure company, MARA Holdings, has announced the sale of more than 15,000 bitcoins (BTC) to fund its debt buyback and reduce its outstanding indebtedness.

According to a press release, the company sold 15,133 BTC for approximately $1.1 billion between March 4 and 25. MARA Holdings will continue to repurchase its debt through March 31, subject to customary closing conditions. The remaining proceeds from the bitcoin sale will be used for general corporate purposes.

MARA Offloads BTC for Debt Buyback

To facilitate the debt repurchase, MARA Holdings entered into a privately negotiated agreement with certain holders of its outstanding 0.00% convertible senior notes. The agreement encompassed notes due in 2030 and 2031.

The plan is to buy back roughly $367.5 million in aggregate principal amount of the 2030 notes for a repurchase price of $322.9 million. On the other hand, the company will buy back $633.4 million in principal amount of the 2031 notes for an aggregate repurchase price of $589.9 million.

“Our decision to sell a portion of our bitcoin holdings reflects a strategic capital allocation move designed to strengthen our balance sheet and position the company for long-term growth,” MARA’s chairman and chief executive officer, Fred Thiel, said.

$923M Outstanding Debt Left

The repurchasing of the notes is expected to close on March 30 for the ones due 2030 and March 31, 2026 for the ones due 2031. Through this arrangement, MARA aims to capture at least $88.1 million (9% to par value) in value through cash savings before transaction costs. The company will also reduce potential future dilution associated with the conversion feature of the notes.

Additionally, the repurchase agreement is expected to slash the firm’s outstanding convertible indebtedness by approximately 30%. MARA Holdings will have $632.5 million principal amount of the 2030 notes and $291.6 million principal amount of the 2031 notes left outstanding upon completion of the agreement.

“By retiring over $1 billion of face value debt at a discount, we captured approximately $88 million in value that would otherwise have been lost, reduced potential shareholder dilution, and leveraged our bitcoin holdings to meaningfully de-lever the balance sheet on our terms. This transaction enhances financial flexibility and increases strategic optionality as we expand beyond pure-play bitcoin mining into digital energy and AI/HPC infrastructure,” Thiel added.

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