MARA Holdings Launches $2 Billion Stock Offering to Boost Bitcoin Reserves

Bitcoin mining firm MARA Holdings has unveiled a new $2 billion stock offering to acquire more Bitcoin.

ContentsMARA secures ATM Equity program for Bitcoin purchasesMARA expands Bitcoin strategy amid changing market conditionsMARA’s long-term performance reflects growth The company continues its strategy of using capital raises to increase its cryptocurrency reserves while maintaining its long-term investment approach.

MARA secures ATM Equity program for Bitcoin purchases

According to a Form 8-K and a new prospectus filed with the U.S. Securities and Exchange Commission (SEC), MARA has established an at-the-market (ATM) equity program. The company is working with a group of investment banks, including Barclays, BMO Capital Markets, BTIG, and Cantor Fitzgerald, to manage the stock sale.

The shares will be sold periodically at MARA Holdings’ discretion. The company stated that the primary purpose of the offering is to acquire Bitcoin while also supporting general corporate needs. In the prospectus, MARA clarified that proceeds would be used for Bitcoin purchases and working capital.

The firm has a market capitalization of $4.7 billion and maintains a strong liquidity position, with a current ratio of 4.94. The stock sale will be conducted through various methods, and agents will receive a commission of up to 3% on gross proceeds from each sale.

At the same time, MARA Holdings has canceled its previous ATM offering agreement from October 24, 2023, which authorized the sale of up to $1.5 billion in common stock. No further transactions will occur under that agreement or its related prospectus supplement.

MARA expands Bitcoin strategy amid changing market conditions

MARA has adopted an approach similar to that of Michael Saylor by using equity and convertible bonds to accumulate Bitcoin. The company currently holds 46,376 BTC, making it the second-largest Bitcoin-holding publicly traded firm after MicroStrategy, which holds 506,137 BTC.

Although MARA is a Bitcoin mining company, it has increasingly turned to direct Bitcoin purchases. The decision comes as mining Bitcoin at a discount to the market price has become more challenging.

The recent Bitcoin halving event reduced mining rewards, putting additional financial pressure on miners. As operational costs rise, many firms in the industry are reconsidering their strategies. Buying Bitcoin directly has become a more viable option for companies looking to expand their holdings while maintaining sustainable operations.

MARA’s long-term performance reflects growth

Despite Bitcoin’s market volatility, MARA has continued to attract institutional interest. Over the last five years, the company has achieved a total shareholder return of 2,881.63%. This performance highlights the firm’s progress in adapting its business strategy to the evolving crypto landscape.