- MARA Holdings sold 15,133 Bitcoin for roughly $1.1 billion to fund a major debt repurchase.
- The company will repurchase $1 billion in convertible notes at a $88.1 million discount, reducing its debt by 30%.
- The strategic move aims to strengthen the balance sheet and reduce future dilution risk for shareholders.
- Shares of MARA surged nearly 10% following the announcement, with retail sentiment turning bullish.
Shares of MARA Holdings (MARA) surged nearly 10% on Thursday after the company announced a strategic debt-reduction plan funded by recent Bitcoin sales. The firm entered agreements to repurchase about $1 billion in convertible senior notes due 2030 and 2031 at a discounted cash price of roughly $912.8 million.
To fund this buyback, MARA sold 15,133 Bitcoin for approximately $1.1 billion earlier in March. Consequently, the company expects to save up to $88.1 million, reflecting a 9% discount to par value while cutting convertible debt by about 30%. Chairman and CEO Fred Thiel stated, “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.”
Meanwhile, retail sentiment for MARA on Stocktwits flipped to ‘bullish’ from ‘bearish’ a day earlier. One user highlighted the company’s position not to dilute further, while another noted the stock’s high short interest and potential rally.
However, MARA recently reported a 6% drop in fourth-quarter revenue to $202.3 million, hurt by weaker bitcoin prices. It also swung to a $1.7 billion net loss due to a $1.5 billion hit from digital asset revaluation, according to Koyfin data. The company said it plans to keep selling bitcoin opportunistically in 2026 to boost liquidity and support growth initiatives.
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