Mara Holdings rebounds after upsized convertible deal priced
** Shares of Mara Holdings MARA.O up 12.2% at $20.31 Tues after cryptocurrency miner raises more capital than targeted
** Co (formerly Marathon Digital) late Mon announced pricing private offering of $850 mln 0% convertible bonds (CBs) due 2030, with up to $150 mln over-allotment option
** MARA shares on Mon fell 14.1% to $18.11 after co announced planned $700 mln convertible deal
** Co plans to use ~$199 mln of net offering proceeds to repurchase existing CBs due 2026, remainder to buy additional bitcoin and for general purposes
** Initial conversion price on new CBs of $25.9133 represents 42.5% premium to VWAP (volume weighted avg price) of MARA shares from 2:00-4:00 p.m. ET on Mon
** Shares on Nov 13 fell 14% to $21.70, a day after co posted Q3 net loss of 42 cents/sh, vs LSEG consensus estimated adj loss of 26 cents/sh, saying bitcoin BTC= production impacted by increased global hash rate - total computational power being used by all miners worldwide - and resultant network difficulty
** Despite gain on the session, shares down ~13% YTD, giving co current market cap of about $6.6 bln
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
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