MARA Holdings, Inc., a leader in digital asset infrastructure, plans to raise $700 million through the issuance of convertible senior notes due in 2030.

This move provides institutional investors with an opportunity to support the company’s expansion efforts.

MARA Seeks $700 Million to Supercharge Bitcoin Expansion

The notes, issued privately under Rule 144A of the Securities Act of 1933, reflect Marathon Digital’s strategy to balance risk and responsibility. These notes provide investors with semi-annual interest payments and the ability to convert their debt into company stock under specific conditions.

This approach allows MARA to attract capital while retaining flexibility to manage its debt and invest in future growth. The company also reserves the option to increase the offering by an additional $105 million if demand allows.

MARA plans to use $200 million from the offering to repurchase existing convertible notes due in 2026. This move helps them to reduce upcoming financial obligations while taking advantage of favorable market conditions. The company will use the remaining proceeds to acquire more Bitcoin and fund corporate needs, including working capital and potential acquisitions.

Investors holding existing 2026 notes may unwind hedge positions, leading to increased demand for MARA shares. This activity could temporarily push up their stock price, adding volatility during the offering.

The notes will mature on March 1, 2030, with interest payments beginning March 2025. Depending on MARA’s choice, investors can convert the notes into cash, stock, or a mix of both. Conversion rights begin under specific conditions before December 2029 and become open-ended thereafter. They also reserve the right to redeem the notes for cash starting in 2028.

“Something to remember with crypto miners on the back of MARA dilution news… their share counts are vastly different than the 2021 run. MARA has 200%+ more shares than when BTC was all time high 2021 which means $20 now is the same market cap as $60 then,” one analyst on X chimed in.

While the convertible notes offer attractive terms, they also carry potential dilution if converted into shares, which can challenge shareholder value.

By addressing its debt obligations early and securing funds for expansion, MARA aims to strengthen its position in a competitive and fast-evolving sector. Whether or not they can pull off this bold move is another story and sets the stage for significant developments in the years ahead.

November has been dominated by all-time highs, spearheaded by the crypto king, Bitcoin. While numerous coins are reaching new peaks, others, though not hitting ATHs, have significant developments on the horizon. These events could potentially spark rallies and notable gains for their native tokens in the coming days.

BeInCrypto has identified three altcoins to watch this week, each poised for upcoming milestones that may drive their performance.

Aptos (APT)

Aptos is currently trading above the critical level of $10.92, aligning with the 61.8% Fibonacci Retracement line, often referred to as the bull market support floor. This level plays a vital role in maintaining the cryptocurrency’s bullish sentiment.

This week marks a significant milestone for Aptos as Bitwise prepares to launch the world’s first Aptos Staking ETP. This exchange-traded product will aim to stake the Aptos held by the fund, potentially driving increased interest and demand, which could lead to a surge in price.

If momentum builds, Aptos could break past the resistance at $14.05, signaling continued growth. However, should the market sentiment shift, a drop below $10.92 could invalidate the bullish outlook, pushing the price toward $9.15 and raising concerns among investors.

Floki (FLOKI)

FLOKI has surged by 128% over the past two weeks, with its price currently trading at $0.0002670. The meme coin’s uptrend could extend further if it successfully breaches the resistance at $0.0002776, setting the stage for continued gains.

The anticipated collaboration between Floki and Animoca Brands’ Forj, set to launch the $MONKY memecoin on November 21, 2024, adds to the bullish sentiment. This initiative, supported by partnerships with ApeCoin and Bored Ape Yacht Club, has created excitement among investors and could fuel additional price increases.

If the momentum from this launch propels FLOKI further, the meme coin may reach $0.0003138. However, losing the key support level at $0.0002568 could lead to a correction, pulling the price down to $0.0002108 and invalidating the current bullish outlook.

Zcash (ZEC)

Zcash (ZEC) has risen by 25.5% in the past four days, currently trading at $46.16. The cryptocurrency aims to breach and flip $46.24 into a support floor, which could enable a rally toward $50.00. Sustaining this momentum is crucial for ZEC’s continued upward trajectory.

The upcoming Network Upgrade 6 (NU6), scheduled for around November 23, is expected to bring significant updates to the Zcash network. This deployment could further fuel bullish sentiment and drive a potential price increase as the market reacts to these developments.

Should ZEC capitalize on this momentum, surpassing $50.00 becomes a strong possibility. However, a drop below the key support level of $40.76 could invalidate the bullish outlook, potentially resulting in a notable correction and losses for investors.