MARA sells $1.1 billion in Bitcoin in debt repurchase program, accelerates AI infrastructure pivot

• MARA has sold 15,133 BTC for $1.1 billion, using proceeds to repurchase convertible notes and significantly reduce outstanding debt obligations.
• The debt buyback was executed at a 9% discount, cutting total convertible debt by about 30% and improving balance sheet flexibility.
• MARA is easing its HODL strategy and expanding into AI and HPC infrastructure amid rising costs, credit pressure and operational challenges.

MARA Holdings (MARA) said Thursday it sold 15,133 Bitcoin (BTC) between March 4 and 25 for approximately $1.1 billion, using the bulk of the proceeds to reduce outstanding debt and strengthen its balance sheet.

MARA sells from Bitcoin holdings amid AI infrastructure pivot

The company directed $1.0 billion toward repurchasing its 0.00% Convertible Senior Notes due 2030 and 2031. In privately negotiated transactions, MARA agreed to repurchase roughly $367.5 million in principal of the 2030 notes for $322.9 million in cash, and $633.4 million in principal of the 2031 notes for $589.9 million in cash, totaling approximately $912.8 million. The transactions are expected to close on March 30 and 31, subject to customary conditions.

The repurchases were executed at an approximate 9% discount to par value, projected to generate about $88.1 million in savings before transaction costs. The move reduces MARA’s total convertible debt from approximately $3.3 billion to about $2.3 billion.

Chairman and CEO Fred Thiel described the move as a “strategic capital allocation” aimed at strengthening the company’s financial position, lowering potential shareholder dilution, and increasing flexibility.

“This transaction enhances financial flexibility and increases strategic optionality as we expand beyond pure-play bitcoin mining into digital energy and AI/HPC infrastructure,” Thiel said in a statement on Thursday.

The move also reflects a shift in MARA’s treasury strategy amid mounting operational and financial pressures. The company maintained a strict “HODL” approach for its Bitcoin holdings through much of 2024, but began easing in 2025, allowing sales of newly mined BTC to fund operations, CoinShares stated in its Q1 Bitcoin mining report.

In its 10-K filing earlier this month, MARA expanded on this new stance, authorizing potential sales from its Bitcoin reserve. The adjustment came as pressure mounted on its $350 million Bitcoin-backed credit facility, where the loan-to-value ratio rose to approximately 87% amid declining Bitcoin prices.

At the same time, the company is accelerating its push beyond pure-play mining. MARA recently partnered with Starwood Capital to develop AI and HPC data centers and acquired a 64% stake in Exaion for $174.5 million. The shift comes amid intensifying competition for power, capital, and infrastructure, as AI workloads increasingly rival Bitcoin mining.