Why Bitcoin-Related Stock MARA Holdings Is Falling

MARA Holdings Inc MARA shares are trading lower by 5.6% to $19.90 Monday morning after the company announced a $700 million convertible note offering to boost its Bitcoin holdings and repurchase debt.

What To Know: MARA Holdings announced a private offering of $700 million in convertible senior notes due 2030, with an option for initial purchasers to buy an additional $105 million.

The company says the notes will bear semi-annual interest starting March 1, 2025, and mature on March 1, 2030, unless earlier converted, redeemed or repurchased.

Redemption and conversion terms include conditions beginning in 2027 and 2028, respectively. Proceeds will be used to repurchase existing 2026 convertible notes, acquire bitcoin and support corporate purposes, including debt repayment and strategic expansion.

MARA meanwhile says the repurchase of 2026 notes may lead to market activity, as hedged holders could buy MARA stock or adjust derivative positions, potentially impacting MARA's stock price and the conversion price of the new notes. The final terms, including the interest rate and conversion rate, will be set at pricing.

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How To Buy MARA Stock

By now you're likely curious about how to participate in the market for MARA Holdings – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of MARA Holdings, which is trading at $21.07 as of publishing time, $100 would buy you 4.75 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, MARA has a 52-week high of $34.09 and a 52-week low of $9.21.