MARA Uses Bitcoin to Erase $750 Million Collateral Risk

MARA erased a $750 million collateral risk through Bitcoin sales, according to the company’s Nov. 9 disclosures. The sales brought in approximately $350 million more than the loan payoff; adding that difference to September cash produced a rough $1.3 billion liquidity bridge before other cash movements.

MARA entered the fourth quarter with $946.5 million of cash and cash equivalents, excluding $12 million of restricted cash.

What will the Bitcoin proceeds fund?

In its quarterly letter, management said it intends to “use Bitcoin to build cash” for three priorities:

• AI infrastructure opportunities.
• Cash-put rights on convertible notes exercisable in 2027.
• Potential repurchases of MARA common shares.

The disclosure sets priorities rather than a sale trigger. The put calendar itself does not require MARA to sell Bitcoin to meet potential cash demands.

What can noteholders demand?

As of Sept. 30, MARA disclosed two cash-put positions:

• $291.6 million of June 2031 notes carrying a June 4, 2027 cash-put right.
• $632.5 million of March 2030 notes carrying a Dec. 1, 2027 right.

Together, the September balances totaled about $924.1 million. A cash put lets a bondholder require MARA to repurchase all or part of the relevant notes at face value, plus any applicable unpaid special interest.

The notes retain contractual maturities in 2030 and 2031. Their eventual cash cost depends on which holders exercise their rights and how much principal remains outstanding. A separate $48 million note obligation outstanding at Sept. 30 matures Dec. 1.

How much liquidity is available?

MARA’s majority-owned subsidiary Exaion held approximately 11% of the $946.5 million balance in euros, and that cash was contractually designated for Exaion’s operations over the next year. The designation narrows how freely MARA can redirect the headline balance toward note puts or other corporate uses.

MARA used $642.7 million of cash in operating activities during the first nine months of 2026. Its Bitcoin-sale proceeds fall under investing cash flows, so the operating outflow alone cannot establish a funding gap after those sales.

The company also reported about $1.5 billion of unused capacity under its at-the-market share issuance program as of Sept. 30. Management said existing liquidity resources “provided flexibility to meet obligations and fund growth over the next twelve months and beyond.”

Where else can the cash go?

The planned acquisition of power business Long Ridge remained pending in the Nov. 9 disclosures. Its approximately $1.5 billion enterprise value includes up to about $900 million of assumed debt.

A bridge commitment of up to $785 million supports a portion of that debt if needed, subject to customary conditions. The acquisition therefore adds a material financing requirement alongside MARA’s note obligations.

Under MARA’s data-center development agreement with Starwood, the company approved $136.3 million for pre-development pursuit costs across sites and had incurred about $17.7 million by Sept. 30.

Site contributions receive value before MARA adds incremental equity, while project financing is expected to be non-recourse. The expected structure would keep project lenders from pursuing MARA for the project debt, although MARA would still need to provide incremental equity.

The HIF site-development project carries a price of up to $600 million tied to post-closing development milestones, with additional payments possible for specified shortfalls. MARA therefore cannot treat $600 million as the absolute project cost if those shortfalls trigger extra payments.

MARA’s board authorized up to $500 million of common-share purchases on Nov. 9. The authorization requires no particular amount and can be suspended or terminated, leaving repurchases discretionary rather than a committed use of cash.

What will reveal the cash strategy?

The next meaningful supply signal will be MARA’s disclosure of further Bitcoin sales and how it deploys the proceeds. Updated cash and remaining note balances should show whether management is preparing for holder puts or directing capital toward optional infrastructure and buyback spending.

The concrete checkpoints are the June 4 and Dec. 1, 2027 put dates, although neither automatically compels a Bitcoin sale. The next cash and note disclosure will test whether MARA preserves the rough $1.3 billion bridge for obligations or redirects it into growth and repurchases.