MARA dumps Bitcoin to erase a $750M collateral risk
The miner still plans Bitcoin monetization for infrastructure, potential buybacks and holder-exercised bond puts, with dated cash and financing offering alternatives. Read the full story on CryptoSlateUnderstand the crypto stories that matter and what to watch next. Get The Catalyst in your inbox
Bitcoin miner MARA Holdings has repaid its $750 million of Bitcoin-backed loans, ending the collateral-liquidation exposure attached to those facilities.
Further coin sales could now serve to build cash for bondholder demands, AI infrastructure, and possible share buybacks.
The company's Nov. 9 filing disclosed that it sold 13,597 Bitcoin after Sept. 30 for approximately $1.1 billion and used $750 million to repay the loans in full.
Management's quarterly letter says it intends to use Bitcoin to build cash for AI infrastructure opportunities, convertible-note puts exercisable next year and potential repurchases of its own shares.
As of Sept. 30, MARA had $291.6 million of June 2031 notes carrying a June 4, 2027 cash-put right, and $632.5 million of March 2030 notes carrying a December 1, 2027 right. Together, those September balances total about $924.1 million.
A cash put lets a bondholder require the company to buy back all or part of the notes for cash at face value, plus any applicable unpaid special interest.
The notes' contractual maturity dates remain in 2030 and 2031, and the eventual cash bill depends on which holders exercise and how much principal remains outstanding.
A separate obligation of $48 million of notes outstanding at Sept. 30 matures on Dec. 1. The put calendar does not require MARA to sell Bitcoin to meet potential cash demands.
MARA entered the fourth quarter with $946.5 million of cash and equivalents, excluding $12 million of restricted cash. Approximately 11% of that cash was held in euros by its majority-owned subsidiary Exaion and contractually designated for its operations over the next year.