MARA Holdings Stock Drops 9% Amid $850M Convertible Notes Offering

MARA Holdings (MARA) shares plummeted 8.9% to $18.11 following the announcement of an $850 million zero-coupon convertible notes offering. The market reaction reflects concerns over potential dilution and valuation pressures as the company seeks to raise capital through unsecured senior notes due in 2032.

The offering includes an option for initial purchasers to acquire an additional $150 million within 13 days. MARA plans to use proceeds for debt repurchases, Bitcoin acquisitions, and growth investments, while capped call transactions aim to mitigate dilution risks from future conversions.

Wall Street's response highlights the delicate balance between capital-raising and shareholder value in volatile market conditions. The move underscores MARA's aggressive financing strategy amid evolving cryptocurrency market dynamics.