JWCA advises MARA Holdings on its upsized $950 million convertible issuance
jULY 2025 | read press release
Transaction Background
Following three convertible issuances raising over $2bn in proceeds in 2024, MARA Holdings (“MARA” or the “Company”) successfully raised $950 million in the convertible market at attractive terms (0.00% coupon and 17.5% conversion premium)
The Company’s objectives included:
Opportunistically raise capital to retire a portion of its outstanding 2026 convertible, acquire additional bitcoin and general corporate purposes
Minimize stock price risk during execution
Protect against future equity dilution through a derivative overlay
JWCA provided extensive analysis for MARA on deal structuring and related items, such as:
Convertible and derivative overlay structuring including customized investor put option designed to reduce coupon
Analysis of pricing mechanisms (VWAP vs. Close)
Execution strategy and timing
Convertible and capped call documentation to ensure maximum value and future efficiency/flexibility for the company
JWCA designed and ran a capped call auction process to achieve competitive terms
JWCA provided advice, support and analysis throughout the execution process
Results
MARA’s fourth convertible financing transaction in a one-year period was well received by investors:
The transaction received significant demand allowing the Company to upsize
This marked the Company’s third zero-coupon convertible bond issuance in an eight-month span (nearly $3bn of zero-coupon debt raised)
Capped call documentation and auction process produced meaningful savings for MARA, while maximizing flexibility for the Company
This is JWCA’s fifth advisory assignment for the Company after advising MARA’s on its inaugural convertible issuance in November 2021 and three additional issuance in August, November and December 2024