MARA Holdings Inc. (MARA), a Bitcoin miner, plans to raise more Bitcoin by selling up to $2 billion worth of stock. The company, which used to be called Marathon Digital, uses a plan like Michael Saylor of MicroStrategy, which has used stock offerings to raise vast amounts of Bitcoin. This move shows how much MARA cares about Bitcoin, making it even more potent as one of the most significant public cryptocurrency users.
$2B Stock Offering Agreement
MARA told the U.S. Securities and Exchange Commission (SEC) on March 28 that it has signed an at-the-market agreement with top investment companies such as Cantor Fitzgerald and Barclays. The companies will help sell up to $2 billion worth of MARA stock on the open market as part of this deal.
MARA Holdings said about the money it raised: “general corporate purposes, including the acquisition of Bitcoin and for working capital.” This fits with the company’s long-term plan to hold on to Bitcoin instead of selling it to pay for operations, which is what makes it different from many other crypto miners.
Competition with MicroStrategy’s Bitcoin Strategy
MARA’s move is like what MicroStrategy (now called Strategy) has been doing. MicroStrategy has been getting more Bitcoin by selling stocks and issuing loans. MicroStrategy currently has 506,137 BTC, which is worth about $42.4 billion.
Bitcoin statistics show that MARA Holdings has 46,374 BTC worth about $3.9 billion, making it the second-largest public Bitcoin holder. MARA CEO Fred Thiel said the company is going “full HODL,” meaning it will keep all earned Bitcoin and acquire more to run the business.
Market Changes and Stock Performance
MARA’s price has been very volatile lately, even though the company is optimistic about Bitcoin. Following a general selloff in crypto mining stocks on March 28, MARA’s shares dropped 8.58% and ended at $12.47. There were rumors that Microsoft had scrapped plans to build new data centers in the U.S. and Europe, which affect the sector’s mood.
Conclusion
Their $2 billion stock sale is a big bet on Bitcoin’s long-term value. By keeping more Bitcoin on hand, MARA is solidifying its place as the most significant player in the crypto mining business.
