TLDR
- Aiming to solidify its Bitcoin stance, MARA Holdings intends to release up to $2 billion in shares for new Bitcoin acquisitions.
- Barclays and Cantor Fitzgerald are among the investment firms teamed with MARA to progressively distribute shares.
- With over 46,000 BTC valued at near $4 billion, MARA ranks as the second-largest corporate holder of Bitcoin.
- MARA is embracing a 'full HODL' strategy, choosing to retain all Bitcoin mined and increase its buying efforts.
- Recording robust Q4 2024 outcomes of $214.4 million in revenue, MARA recently procured a Texas wind farm for greener mining operations.
A leading global Bitcoin mining entity, MARA Holdings Inc. plans to issue stock worth $2 billion to aid further Bitcoin purchases. a Form 8-K and The announcement was made via a prospectus submitted to the Securities and Exchange Commission. on March 28.
Based in Florida and once known as Marathon Digital, the company has formed an 'at-the-market' arrangement with major investment players like Cantor Fitzgerald, Barclays, and Guggenheim Securities.
According to this arrangement, these firms are set to offload MARA shares through Nasdaq or other mutually agreed methods as market conditions permit.
MARA expressed intentions in its SEC filing to utilize the proceeds for general business needs, including Bitcoin acquisitions, without providing specific timelines or volumes.
This tactic resembles the method adopted by Michael Saylor's Strategy (formerly MicroStrategy), which holds the largest Bitcoin reserves through various market moves.
MARA maintains the second-highest Bitcoin reserve among public companies, clutching 46,374 BTC valued at approximately $3.9 billion. according to Bitbo data.
The latest stock offering comes on the heels of MARA's previous efforts to augment its Bitcoin reserves with a similar $1.5 billion share sale.
In a November move, MARA issued $1 billion in zero-coupon convertible senior notes, largely aimed at financing Bitcoin purchases.
Back in July, MARA CEO Fred Thiel highlighted the company's shift to a 'full HODL' strategy, opting not to sell its mined Bitcoin.
MARA's vision involves holding onto both its mined and newly acquired Bitcoin, marking a bet on the currency's long-term appreciation.
Following Saylor’s Lead
The announcement about the stock offering coincided with a dip in MARA's stock value, closing at $12.47 after an 8.58% drop on March 28. according to Google Finance.
March 30 saw another 4.6% drop in MARA stocks, reaching $11.89, demonstrated by data from Robinhood, reflecting broader market anxieties.
Crypto mining stocks were unsettled by news of Microsoft halting plans for new data centers, while Bitcoin hovered slightly over $82,000.
Despite stock market fluctuations, MARA's financials remained strong with a 37% revenue boost to $214.4 million in Q4 2024.
Ending 2024 with a net income of $528.3 million, MARA saw a 248% increment year-over-year, while its adjusted EBITDA rose by 207% to $794.4 million.
February marked MARA's acquisition of a Texas wind farm providing 114 megawatts of renewable power, addressing energy concerns.
This wind farm supports older mining equipment that would have retired, aligning with rising industry priorities on sustainable energy use.
MARA's assertive Bitcoin procurement happens amid substantial Bitcoin price rallies, having peaked above $83,000 before a minor pullback.
