MARA Holdings saw its shares rise 5% on Thursday morning after the company disclosed plans to repurchase about $1.0 billion of its convertible debt, a move the digital energy and infrastructure firm said will cut its convertible note obligations significantly.
The company reached privately negotiated agreements to buy back roughly $367.5 million in aggregate principal of its 0.00% Convertible Senior Notes due 2030 for approximately $322.9 million, and about $633.4 million in aggregate principal of its 0.00% Convertible Senior Notes due 2031 for approximately $589.9 million. MARA said the respective transactions are expected to settle on March 30, 2026 and March 31, 2026.
According to the company, the repurchases should generate approximately $88.1 million in gross cash savings before transaction costs, which MARA described as representing an approximate 9% discount to par value. The purchases will reduce the company’s outstanding convertible indebtedness by roughly 30%.
After the repurchases close, MARA will have $632.5 million in principal remaining on the 2030 Notes and $291.6 million in principal remaining on the 2031 Notes.
To fund the debt buybacks, MARA sold 15,133 bitcoin between March 4 and March 25, 2026, realizing an aggregate sale price of about $1.1 billion. The company indicated that the portion of proceeds not used for the repurchases will remain available for general corporate purposes.
MARA also disclosed the effect on its total convertible note indebtedness: a decline from $3.3 billion as of December 31, 2025 to approximately $2.3 billion after the transactions are completed.
J. Wood Capital Advisors served as financial advisor to MARA on the transactions, and law firm Paul, Weiss, Rifkind, Wharton & Garrison acted as legal counsel.
Context and implications
The repurchase program reduces principal outstanding across two zero-coupon convertible note series and is financed primarily through the company’s disposals of bitcoin holdings. The company quantified the immediate cash savings expected from the discounts to par and disclosed the post-transaction balances that will remain outstanding for each note series.
Share price movement on Thursday morning reflected investor reaction to the debt reduction plan, which occurred despite cited weakness in bitcoin prices during the period when MARA executed its bitcoin sales.