MARA Stock Surges on $1B Debt Reduction Plan Backed by Bitcoin Sales

MARA Holdings' (MARA) stock jumped nearly 10% on Thursday after the company announced significant debt-reduction moves backed by Bitcoin sales. To fund the repurchases, MARA sold 15,133 Bitcoins for about $1.1 billion earlier in March.

The company will use the remaining proceeds from the Bitcoin sale for general corporate purposes. By repurchasing approximately $1 billion in convertible senior notes due 2030 and 2031 at a discounted cash price of roughly $912.8 million, MARA expects to save up to $88.1 million, reflecting a 9% discount to par value.

The transactions are expected to close by the end of March. This debt reduction is expected to reduce future dilution risk tied to note conversions and position the company for long-term growth.

According to Fred Thiel, MARA's chairman and CEO, the decision to sell a portion of their Bitcoin holdings was a strategic capital allocation move designed to strengthen the balance sheet and leverage their bitcoin holdings to de-lever the balance sheet on their terms.