MARA Stock Jumped 10% Today – Here’s Everything To Know About Its Bitcoin-Based Debt Reduction Strategy

• The company will repurchase the $1 billion notes at an $88 million discount.
• MARA had already sold 15,133 Bitcoin for about $1.1 billion earlier in March.
• The firm will use the remaining proceeds for general corporate purposes.

Shares of MARA Holdings (MARA) jumped nearly 10% on Thursday after the company announced major debt-reduction moves backed by bitcoin sales.

MARA said it has entered into agreements to repurchase about $1 billion in convertible senior notes due 2030 and 2031 at a discounted cash price of roughly $912.8 million. The transactions are expected to close by the end of March.

$1.1 Billion Bitcoin Sales

To fund the buyback, MARA sold 15,133 Bitcoin for about $1.1 billion earlier in March. The company expects to save up to $88.1 million, reflecting a 9% discount to par value, while also cutting its convertible debt by about 30%. This is expected to reduce future dilution risk tied to note conversions, the company said.

MARA said the remaining proceeds would be used for general corporate purposes.

“Our decision to sell a portion of our bitcoin holdings reflects a strategic capital allocation move designed to strengthen our balance sheet and position the company for long-term growth. By retiring over $1 billion of face value debt at a discount, we captured approximately $88 million in value that would otherwise have been lost, reduced potential shareholder dilution, and leveraged our bitcoin holdings to meaningfully de-lever the balance sheet on our terms,” said Fred Thiel, MARA’s chairman and CEO.

How Did Retail Traders React?

Retail sentiment for MARA on Stocktwits flipped to ‘bullish’ from ‘bearish’ a day earlier.

One user highlighted the company’s position not to dilute any further after the move.

Another user highlighted the stock’s high short interest and the potential for it to rally.

Bitcoin Dip Impacts Q4 Financial Performance

Earlier this month, MARA reported a 6% drop in fourth-quarter revenue to $202.3 million, hurt by weaker bitcoin prices. It also swung to a $1.7 billion net loss due to a $1.5 billion hit from digital asset revaluation. Both topline and bottom line figures missed Wall Street estimates, according to Koyfin data.

The company said it plans to keep selling bitcoin opportunistically in 2026 to boost liquidity and support growth initiatives.

While MARA outlined its shift toward AI and high-performance computing (HPC) last August, the bulk of its revenue still comes from Bitcoin mining. CFO Salman Khan had earlier noted that every $10,000 move in Bitcoin’s price changes the value of the company’s holdings by roughly $538 million.

Year-to-date, the stock has edged around 3% lower.

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