MARA repays $750 million of Bitcoin-backed loans after selling 13,597 BTC

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MARA repays $750 million of Bitcoin-backed loans after selling 13,597 BTC

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MARA Holdings repaid $750 million of Bitcoin-backed loans after selling 13,597 Bitcoin since Sept. 30. The repayment ends the lender-liquidation exposure on those facilities, but management still plans to use Bitcoin to build cash for AI infrastructure, note puts and possible share repurchases.

Bitcoin miner MARA Holdings has repaid its $750 million of Bitcoin-backed loans, ending the collateral-liquidation exposure attached to those facilities. The company funded the payoff by selling Bitcoin.

MARA's Nov. 9 filing disclosed that it sold 13,597 Bitcoin after Sept. 30 for approximately $1.1 billion and used $750 million of that to repay the loans in full. The repayment removes one route by which lenders could have forced a sale of pledged collateral, yet it does not establish that MARA will stop selling Bitcoin.

Two 2027 put dates keep cash in focus

As of Sept. 30, MARA had $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, those 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, so the eventual cash bill depends on which holders exercise and how much principal remains outstanding.

Cash on hand and competing uses for it

MARA entered the fourth quarter with $946.5 million of cash and equivalents, excluding $12 million of restricted cash. It also reported about $1.5 billion of unused capacity under its at-the-market share issuance program as of Sept. 30.

Infrastructure and buybacks compete for that capital. The planned acquisition of power business Long Ridge, with an approximately $1.5 billion enterprise value, remained pending in the Nov. 9 disclosures. Separately, the board's Nov. 9 authorization permits up to $500 million of common-share purchases, but requires no particular amount and can be suspended or terminated.

The next signal for the market is MARA's disclosure of further Bitcoin sales and how it uses the proceeds.

Source: CryptoSlate

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