Marathon Digital Holdings (MARA), one of the largest publicly traded Bitcoin mining companies, has unveiled plans for a massive $2 billion at-the-market (ATM) stock offering. The company aims to use the raised capital to increase its Bitcoin reserves, continuing its aggressive acquisition strategy.
Key Highlights:
- MARA is launching a new $2 billion ATM stock offering after previously raising $1.4 billion through a similar program.
- The proceeds will be allocated for general corporate purposes, with a significant focus on Bitcoin acquisitions.
- MARA has significantly expanded its Bitcoin holdings, growing from 13,726 BTC to 46,376 BTC.
MARA’s Strategy: Raising Capital to Buy Bitcoin
According to recent filings with the U.S. Securities and Exchange Commission (SEC), MARA has partnered with major investment banks such as Barclays, BMO Capital Markets, BTIG, and Cantor Fitzgerald to facilitate the offering. Through this equity program, the company will sell shares periodically, using the proceeds to purchase Bitcoin in the open market.
“We currently intend to use the net proceeds from this offering for general corporate purposes, including the acquisition of Bitcoin and for working capital,” the company stated in its prospectus.
Following in Michael Saylor’s Footsteps
MARA has adopted a strategy similar to that of MicroStrategy’s co-founder Michael Saylor, leveraging equity and convertible bond offerings to accumulate Bitcoin. This approach has positioned MARA as the second-largest corporate Bitcoin holder, trailing only MicroStrategy, which boasts a staggering 506,137 BTC.
Bitcoin Buying Over Mining?
Despite being a mining company, MARA has increasingly turned to buying Bitcoin directly from the market. This strategy gained traction after the most recent Bitcoin halving event reduced mining rewards, tightening profit margins amid rising operational costs. By combining direct Bitcoin purchases with its mining operations, MARA aims to optimize its holdings while mitigating the financial impact of reduced block rewards.
As Marathon Digital continues expanding its Bitcoin reserves, this latest stock offering underscores the growing trend of corporate entities leveraging financial markets to increase their cryptocurrency exposure.
