Shares of MARA Holdings Inc MARA are trading lower Friday, falling nearly 3% after the Bitcoin BTC/USD mining giant this week announced a significant capital raise.
What To Know: The company revealed plans for a private offering of $850 million in 0.00% convertible senior notes due 2032, with an option for institutional buyers to purchase an additional $150 million.
The move, which could raise up to $1 billion, is intended to strengthen Marathon’s financial position. The company plans to use approximately $50 million of the proceeds to repurchase a portion of its 1.00% convertible notes due in 2026, reducing near-term debt.
The remaining funds are earmarked for acquiring more Bitcoin, funding operations, and potential strategic investments. To mitigate potential shareholder dilution from the conversion of these notes, Marathon will use part of the proceeds for capped call transactions.
Despite the stock’s negative reaction, which is common with debt offerings, there was a note of optimism. Compass Point analyst Ed Engel upgraded MARA on Friday from Sell to Neutral and nearly doubled the price target from $9.50 to $18.
Investors are now looking ahead to Marathon’s second-quarter financial results, scheduled for release on July 29. The company, which holds nearly 50,000 BTC, remains a key player for investors seeking exposure to the cryptocurrency market.
Price Action: According to data from Benzinga Pro, MARA shares are trading lower by 2.8% to $16.77 Friday morning. The stock has a 52-week high of $30.28 and a 52-week low of $9.81.
Read Also: Bitcoin Slips Below $117,000 On Whale Selling, Ethereum, XRP Hold Steady
Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home’s equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get StartedHow To Buy MARA Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in MARA Holdings’ case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
Image: Shutterstock
MARAMARA Holdings Inc$16.92-1.98%Stock Score Locked: Edge Members Only
Benzinga Rankings give you vital metrics on any stock – anytime.
Unlock RankingsEdge RankingsMomentum22.09Growth28.16QualityN/AValue57.40Price TrendShortMediumLongOverview$BTCBitcoin$115644.94-2.32%
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs
