Bitcoin mining giant MARA to issue 124 billion yen worth of Convertible Bonds.

## Additional purchase of BTC

On July 23, Maraholdings, the largest player in the industry in terms of Bitcoin holdings, announced a plan to issue $850 million (approximately 124 billion yen) of zero-interest convertible bonds due in 2032. The convertible bonds will be issued through a private placement to qualified institutional investors, with an additional $150 million issuance option also set.

The majority of the funds raised are planned to be allocated for additional purchases of Bitcoin (BTC), aiming to expand the BTC portfolio. The company currently owns 50,000 BTC. It focuses on Bitcoin mining and digital energy infrastructure, aiming to strengthen its position in the cryptocurrency market.

Convertible bonds can be converted into cash, stock, or a combination of both, with the option on the part of the issuer. Conversions will only be possible under specific conditions until May 1, 2032, and if the stock price falls below the conversion price, investors will have the right to demand a buyback on January 4, 2030.

Additionally, a portion of the raised funds, up to $50 million, is planned to be used for the redemption of existing 1% convertible bonds maturing in 2026. It is expected that this redemption will be accompanied by stock trading activities by hedge funds, which could be a factor in stock price fluctuations.

Mara plans to conduct capped call transactions with financial institutions to mitigate dilution caused by conversion. The company warns that the hedging activities of the financial institutions involved in this transaction may lead to fluctuations in stock prices during the determination of bond prices and throughout the redemption period.