We just saw $MARA tanking yesterday and few followers asked me what’s happening. Given that it’s one of my top crypto play, here is what I think but again, do your own DD before you make any investment decisions.
- Some are worried that $500 million convertible senior notes offering will dilute shares. Yes, it will but you need to look at the details closely. According to IR release from MARA, it has “an initial conversion price of approximately $76.17 per share of common stock. The initial conversion price represents a premium of approximately 37.5% over the last reported sale prices on…”. So it will happen but it’s only worth it if the price goes back to where it was before the drop
- It’s upsized to $650 million from $500 million now at 1% annual interest rate. 1%. Yes, you read that correctly. The investors are so impressed with $MARA’s prospect that they were willing to buy notes at 1% interest rate. Not only that, there was so much demand that they had to upsize. This is a brilliant job by the management team
- Lastly, the SEC investigation. Ahem, no. They are simply asking for more information. And the maximum fine of this, $10,000
Conclusion: Thanks everyone for this amazing buying opportunity at a 30% discount!