MARA's Zero-Coupon Notes Oversubscribed: A Vote of Confidence or a Risky Bet?

GuruFocus.com12-03

MARA holdings (NASDAQ:MARA) is so enticing to the eyes of its investors as reflected by the super high interest to its million zero-coupon convertible senior notes that are already oversubscribed and ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMARA's Zero-Coupon Notes Oversubscribed: A Vote of Confidence or a Risky Bet?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-03 23:16 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/maras-zero-coupon-notes-oversubscribed-151637981.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>MARA holdings (NASDAQ:MARA) is so enticing to the eyes of its investors as reflected by the super high interest to its million zero-coupon convertible senior notes that are already oversubscribed and ...</p>\n\n<a href=\"https://finance.yahoo.com/news/maras-zero-coupon-notes-oversubscribed-151637981.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4585","symbol_name":"ETF&股票定投概念","start_time":0,"source_url":"https://finance.yahoo.com/news/maras-zero-coupon-notes-oversubscribed-151637981.html","article_id":"2488394102","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/9uPy_x7ji0gjMr2pCpn6WA--~B/aD0xNDQ7dz0xNDQ7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/343d790f4300c273df77350ee0028ef4"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2488394102","pubTimestamp":1733238997,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"MARA holdings  is so enticing to the eyes of its investors as reflected by the super high interest to its million zero-coupon convertible senior notes that are already oversubscribed and upsized.MARA is releasing zero-coupon convertible notes which was initially only $700 million but then upsized to $850 million with an option to acquire extra notes for $150 million from $105 million only.GuruFocus has detected 8 Warning Signs with MARA.The notes will be provided privately to qualified institutional buyers. That means the amount that potentially raised could reach up to $1 billion when fully exercised and the bonds will mature in June 2031.The fund is said to be used to acquire more bitcoins and repurchase the existing convertible notes that due in 2026. As it is convertible, the notes can be converted into cash, MARA shares or combination of both.The primary appeal is the convertibility of the notes into MARA's common shares or cash or both. That means these investors are in high conf","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4585":"ETF&股票定投概念","BK4547":"WSB热门概念","BK4595":"比特币概念","BK4588":"碎股","BK4516":"特朗普概念","BK4596":"哈里斯概念","BK4023":"应用软件","BK4600":"加密货币概念","MARA":"MARA Holdings"},"translate_title":"玛拉的零息票据超额认购：信任票还是冒险赌注？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"MARA":1},"content_text":"MARA holdings (NASDAQ:MARA) is so enticing to the eyes of its investors as reflected by the super high interest to its million zero-coupon convertible senior notes that are already oversubscribed and upsized. \nMARA is releasing zero-coupon convertible notes which was initially only $700 million but then upsized to $850 million with an option to acquire extra notes for $150 million from $105 million only. \n\nWarning! GuruFocus has detected 8 Warning Signs with MARA.\n\nThe notes will be provided privately to qualified institutional buyers. That means the amount that potentially raised could reach up to $1 billion when fully exercised and the bonds will mature in June 2031. \nThe fund is said to be used to acquire more bitcoins and repurchase the existing convertible notes that due in 2026. As it is convertible, the notes can be converted into cash, MARA shares or combination of both. \nThe High Confidence of MARA's Investors\nMARA is offering zero-coupon bonds meaning that the bond holders only hope MARA to repay without gaining interest at all until 2031. But even without interest, these notes are oversubscribed already.\nOversubscribed means that investor demand exceeded the number of notes planned to sale. The offering will be closed on December 4, 2024 and after the conditions are met, MARA will receive the funds.\nThe primary appeal is the convertibility of the notes into MARA's common shares or cash or both. That means these investors are in high confidence believe wholeheartedly that the shares of MARA will increase in value and bring them profits regardless the company's performance and highly reliance on Bitcoin that is super volatile in the nature. \nThe Potential of Stock Dilution \nAs the notes are convertibles, then there will be potential for stock dilution when MARA's bond holders choose to convert their notes into MARA shares. That would increase the total number of outstanding shares of MARA. \nWhen new shares issued then the ownership percentage will be diluted, and the company's earnings per share will be lowered as the profits will be divided to the new shares outstanding. Stock dilution will create volatility in the stock price. \nYou can find out immediately find out about MARA's performance with charts and more insights by visiting GuruFocus now!This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":1,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2488394102"}