CryptoSlate
MARA Holdings sold 13,597 Bitcoin for approximately $1.1 billion after Sept. 30 and used $750 million to repay its Bitcoin-backed loans in full, according to its Nov. 9 filing. The repayment released pledged Bitcoin collateral and ended the liquidation exposure attached to those facilities. Management plans to keep monetizing Bitcoin for potential bondholder payments, AI infrastructure and share buybacks.
Why it matters
As of Sept. 30, MARA had $924.1 million in principal across two convertible note issues with cash-put rights in 2027. Those rights allow holders to require repayment of some or all of their notes at face value, plus any applicable unpaid special interest. The actual cash demand depends on how many holders exercise and how much principal remains outstanding.
The notes mature in 2030 and 2031, but their put dates fall on June 4 and Dec. 1, 2027. A separate $48 million of notes outstanding at Sept. 30 matures on Dec. 1. The put rights do not require MARA to sell Bitcoin.
Market impact
Further sales could add Bitcoin supply to the market, although MARA also has other financing options. It entered the fourth quarter with $946.5 million in cash and equivalents, excluding restricted cash. The subsequent Bitcoin sales generated approximately $350 million more than the loan payoff, before other cash movements. MARA also reported about $1.5 billion of unused share issuance capacity as of Sept. 30.
Capital demands extend beyond the notes. MARA's planned Long Ridge power acquisition remained pending, while its board authorized up to $500 million in share repurchases without requiring any purchases. Future Bitcoin sales and updated cash and note balances will show how the company is funding those competing priorities.
Frequently asked questions
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What happened to the Bitcoin pledged against MARA's loans?
The collateral was released after MARA repaid its $750 million in Bitcoin-backed loans, ending the liquidation exposure attached to those facilities.
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How much can MARA noteholders request under the 2027 cash puts?
The two note issues had $924.1 million in principal outstanding as of Sept. 30. The actual demand depends on how many holders exercise their rights and how much principal remains outstanding.
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Do the 2027 noteholder puts force MARA to sell Bitcoin?
No. The put rights do not require MARA to sell Bitcoin, and the company has other liquidity and financing resources.
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How much cash did MARA have before the subsequent Bitcoin sales?
MARA entered the fourth quarter with $946.5 million in cash and equivalents, excluding restricted cash. Its subsequent Bitcoin sales generated about $350 million more than the loan payoff, before other cash movements.
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What other uses is MARA considering for Bitcoin proceeds?
Management plans to monetize Bitcoin for AI infrastructure opportunities, potential bondholder payments and possible share buybacks. The board authorized up to $500 million in share purchases but did not require any purchases.
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