MARA dumps Bitcoin to erase a $750M collateral risk

Bitcoin miner MARA Holdings has eliminated a significant financial risk by fully repaying $750 million in Bitcoin-backed loans through strategic coin sales. The company sold 13,597 Bitcoin after September 30 for approximately $1.1 billion, using three-quarters of those proceeds to clear the debt entirely.

This repayment removes the collateral-liquidation exposure that had been attached to those loan facilities, providing greater financial stability to the mining company. The remaining Bitcoin sales generated approximately $350 million more than the loan payoff amount.

Future Bitcoin Sales Planned

Management's quarterly letter indicates continued Bitcoin monetization is planned, with proceeds potentially directed toward multiple objectives. The company intends to use Bitcoin-generated cash for AI infrastructure opportunities, convertible-note puts exercisable next year, and possible share buybacks.

Bondholder Cash Put Rights

Two significant 2027 dates keep cash demands in focus for MARA. As of September 30, the company held $291.6 million of June 2031 notes with a June 4, 2027 cash-put right, and $632.5 million of March 2030 notes with a December 1, 2027 right. Together, these obligations total approximately $924.1 million.

A cash put allows bondholders to require the company to buy back notes for cash at face value plus any unpaid special interest. The company also reported $48 million of notes maturing on December 1, though the put calendar doesn't require Bitcoin sales to meet these obligations.

Infrastructure and Buyback Plans

MARA entered the fourth quarter with $946.5 million in cash and equivalents, excluding $12 million of restricted cash. Approximately 11% of that cash was held in euros by its subsidiary Exaion for operations over the next year.

The company reported about $1.5 billion of unused capacity under its at-the-market share issuance program as of September 30. Management noted existing liquidity resources provide flexibility to meet obligations and fund growth over the next twelve months and beyond.

Several major infrastructure projects remain in progress, including the pending acquisition of power business Long Ridge (approximately $1.5 billion enterprise value) and data-center development agreements with Starwood ($136.3 million approved across sites). The board has authorized up to $500 million in common-share purchases, though no specific amount is required.