MARA Holdings Inc. (MARA), a prominent Bitcoin mining company, has announced plans to offer up to $2 billion in stock to finance additional Bitcoin purchases.
MARA Holdings Inc. (MARA), a prominent Bitcoin mining company, has announced plans to offer up to $2 billion in stock to finance additional Bitcoin purchases.
This strategic move, disclosed in a March 28 Form 8-K and prospectus filed with the U.S. Securities and Exchange Commission (SEC), will be facilitated through an at-the-market agreement with investment firms, including Cantor Fitzgerald and Barclays.
The company stated that the net proceeds from the stock offering will be allocated for general corporate purposes, primarily focusing on Bitcoin acquisitions and working capital. MARA Holdings, previously known as Marathon Digital, aims to bolster its position in the cryptocurrency market, following a strategy similar to that employed by Michael Saylor, the executive chair of MicroStrategy.
As of writing, MARA Holdings ranks second among public companies in Bitcoin holdings, with approximately 46,374 BTC valued at around $3.9 billion, according to Bitbo data. This positions the company closely behind MicroStrategy, which holds over 506,000 BTC, worth about $42.4 billion.
In a notable commitment to its Bitcoin strategy, CEO Fred Thiel previously declared that the company would not sell any of the Bitcoin it mines, opting instead for a "full HODL" approach while continuing to acquire more cryptocurrency for reserves.
The recent stock offering follows a similar initiative from the previous year, where MARA sought to raise up to $1.5 billion through share sales. In November, the company issued $1 billion in zero-coupon convertible senior notes, with most proceeds earmarked for Bitcoin purchases.
On March 28, shares of MARA closed at $12.47, reflecting an 8.58% decline. Following the announcement, the stock fell further to $11.89 during overnight trading on March 30.
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