Bitcoin Mining Company MARA Holdings Launches $2 Billion Stock Offering
In a bold move to bolster its bitcoin holdings, MARA Holdings (MARA), a prominent player in the bitcoin mining sector, has announced a substantial $2 billion stock offering. This strategic initiative is part of the company’s ongoing commitment to acquiring bitcoin in the open market while adhering to its long-term “Hodl” philosophy.
According to a recent Form 8-K filing and a detailed prospectus submitted to the U.S. Securities and Exchange Commission (SEC), MARA has initiated an at-the-market (ATM) equity program in collaboration with several investment banks, including Barclays, BMO Capital Markets, BTIG, and Cantor Fitzgerald. The funds raised through this offering, which will see brokers selling shares of the company periodically, are primarily intended for the acquisition of bitcoin on the open market.
MARA elaborated in its prospectus, stating, “We currently intend to use the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin and for working capital.” This latest stock sales plan follows a previous ATM offering that targeted up to $1.5 billion, indicating the company’s aggressive approach to expanding its bitcoin treasury.
Emulating the strategies of well-known bitcoin advocates like Michael Saylor, MARA has opted to raise capital through equity and convertible bond offerings, utilizing the proceeds to purchase bitcoin directly from the market. As it stands, the company holds an impressive 46,376 BTC in its treasury, positioning it as the owner of the second-largest bitcoin reserve among publicly traded companies, surpassed only by Strategy, which boasts 506,137 BTC.
The decision to acquire bitcoin from the open market was made last year, despite the fact that miners can theoretically produce bitcoin at a lower cost than the current market price. The mining industry has faced increasing challenges, particularly following last year’s halving event, which halved mining rewards and tightened profit margins amid rising operational costs. This shift has made purchasing bitcoin in conjunction with mining operations a more viable strategy for many miners.
