TLDR
MARA Holdings plans to offer up to $2 billion worth of its stock to purchase more Bitcoin
The company has partnered with investment firms like Barclays and Cantor Fitzgerald to sell shares “from time to time”
MARA currently holds over 46,000 BTC worth nearly $4 billion, making it the second-largest corporate Bitcoin holder
The company is following a “full HODL” strategy, keeping all mined Bitcoin and buying more
MARA reported strong Q4 2024 results with $214.4 million in revenue and recently acquired a Texas wind farm to power mining operations
MARA Holdings Inc., one of the largest Bitcoin mining companies in the world, has announced plans to offer up to $2 billion worth of its stock to fund additional Bitcoin purchases. The announcement came through a Form 8-K and prospectus filed with the Securities and Exchange Commission (SEC) on March 28.
The Florida-based company, formerly known as Marathon Digital, has entered into an at-the-market agreement with several major investment firms. These include Cantor Fitzgerald, Barclays, and Guggenheim Securities.
Under the terms of the agreement, these firms will sell MARA shares “from time to time” directly on Nasdaq or via negotiated transactions. This flexible approach gives MARA the ability to tap into the market as needed.
“We currently intend to use the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin and for working capital,” MARA stated in its SEC filing. The company did not specify a timeline or volume commitment for the stock sales.
This move mirrors the strategy employed by Michael Saylor’s Strategy (formerly MicroStrategy), the largest corporate Bitcoin holder. Strategy has used various market offerings, including stock sales, to amass 506,137 BTC worth approximately $42.4 billion.
MARA Holdings currently holds the second-largest Bitcoin reserves among public companies. It has 46,374 BTC in its coffers, valued at around $3.9 billion according to Bitbo data.
The latest offering follows MARA’s previous financial maneuvers aimed at increasing its Bitcoin holdings. Last year, the company launched a similar offering of up to $1.5 billion worth of its shares.
In November, MARA also issued $1 billion of zero-coupon convertible senior notes. The company planned to use most of those proceeds to purchase more Bitcoin as well.
MARA CEO Fred Thiel announced in July that the company was going “full HODL.” This strategy means the miner won’t sell any of the Bitcoin it mines to fund operations, as is typical in the crypto mining industry.
Instead, MARA plans to keep all mined Bitcoin and purchase more of the cryptocurrency to hold in reserve. This approach represents a long-term bet on Bitcoin’s value appreciation.
Following Saylor’s Lead
The stock offering announcement has coincided with a downturn in MARA’s share price. The company’s stock closed down 8.58% at $12.47 on March 28, according to Google Finance.
MARA shares fell another 4.6% to $11.89 in overnight trading on March 30, as reported by Robinhood. This decline follows broader market jitters in the crypto mining sector.
Reports that Microsoft abandoned plans to invest in new data centers in the US and Europe rattled crypto mining stocks a day earlier. Meanwhile, Bitcoin was trading just above $82,000, down 1.2% over 24 hours after falling from a local high of around $83,500.
Despite the recent stock price decline, MARA has reported strong financial results. In Q4 2024, the company generated $214.4 million in revenue, marking a 37% increase from the previous quarter.
MARA ended 2024 with a net income of $528.3 million, representing a 248% jump year-over-year. The company’s adjusted EBITDA surged 207% to $794.4 million, setting a new benchmark for the mining sector.
In February, MARA completed the acquisition of a wind farm in Hansford County, Texas. The site offers 114 megawatts of wind power and 240 MW of interconnection capacity.
The wind farm was acquired to power older mining rigs that would otherwise have been retired. This move aligns with growing industry concerns about the energy consumption of Bitcoin mining operations.
MARA’s aggressive Bitcoin acquisition strategy comes at a time when Bitcoin’s price has seen major growth. The cryptocurrency recently reached all-time highs above $83,000, though it has pulled back slightly in recent days.
