MARA Sets New Records in Bitcoin Mining and Announces $700M Convertible Notes Offering

November proved to be a record-breaking month for MARA Holdings, Inc. (NASDAQ: MARA), a leader in Bitcoin mining and digital asset strategies. The company achieved unprecedented results in its mining operations and unveiled a bold financial move to further its Bitcoin-centric strategy.

Record-Breaking Mining Operations

MARA mined 254 Bitcoin blocks in November—a 27% increase over October—marking the most blocks ever mined by the company in a single month. This impressive achievement resulted in 907 BTC mined, a 26% increase month-over-month, with an energized hash rate reaching 46.1 EH/s, up 15% from October. These results highlight MARA’s growing operational efficiency and scalability, bolstered by both in-house mining and external Bitcoin acquisitions.

By the end of November, MARA’s 2024 Bitcoin totals included 8,563 BTC mined and 12,965 BTC purchased, bringing its year-to-date BTC acquisition to 21,528. With a total Bitcoin holding of 34,959 BTC, valued at $3.3 billion based on a $95,000 BTC price, MARA’s strategic hybrid model of mining and purchasing continues to deliver exceptional results.

Fred Thiel, MARA’s Chairman and CEO, emphasized the value of this dual strategy:

"As a miner who mines and buys Bitcoin, the hybrid approach provides us significant flexibility to acquire Bitcoin at attractive prices. It further allows us to capitalize on market conditions by buying BTC during price declines, optimizing our acquisition cost."

$700 Million Convertible Notes Offering

In a move to strengthen its Bitcoin acquisition strategy, MARA announced plans to offer $700 million in zero-coupon convertible senior notes due 2031, with an option for an additional $105 million, subject to market conditions. The proceeds will primarily fund the purchase of more Bitcoin and the repurchase of MARA’s existing convertible notes due in 2026.

These notes, aimed at institutional buyers, will not accrue interest and will mature in June 2031. MARA expects to use up to $50 million of the proceeds to repurchase a portion of its 2026 convertible notes, with the remainder allocated to Bitcoin acquisitions, strategic expansions, and general corporate purposes.

This innovative financing strategy demonstrates MARA’s commitment to capitalizing on market conditions and scaling its operations while maintaining flexibility.

Market Implications

The dual impact of MARA’s aggressive mining and acquisition strategy, coupled with its $700 million offering, could influence Bitcoin market dynamics and MARA’s stock price. As holders of the 2026 convertible notes unwind their hedge positions, MARA’s stock may experience increased demand, potentially driving up its price.

Why It Matters

MARA’s record-breaking month and strategic financial maneuvers highlight the growing maturity of the Bitcoin mining sector and its integration into corporate finance. By leveraging a hybrid model and innovative funding strategies, MARA sets an example of how companies can capitalize on Bitcoin’s potential while navigating market challenges.

At Bitcoin on Balance, we believe MARA’s success is a case study for businesses looking to incorporate Bitcoin into their treasury strategy. Whether through mining, purchasing, or leveraging innovative financial instruments, companies can explore new ways to maximize shareholder value.

For more insights into how Bitcoin can transform your business strategy, contact Bitcoin on Balance today for a free 30 minute consultation.