MARA Reports Record Bitcoin Production, Proposes $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.

“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.

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. The remaining funds may be used for general corporate purposes, including strategic acquisitions, expansion of assets, and debt repayment.

“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.

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.