Bitcoin mining company MARA Holdings (MARA) is making headlines with its announcement of a fresh $2 billion stock offering aimed at acquiring more Bitcoin (BTC). This initiative is a continuation of MARA’s strategic approach of purchasing BTC in the open market funded through capital raises, while adhering to its well-known ‘Hodl’ strategy.
In compliance with regulatory requirements, MARA disclosed its plans through a Form 8-K and a new prospectus filed with the U.S. Securities and Exchange Commission (SEC). The company has initiated an at-the-market (ATM) equity program in collaboration with several investment banks, including Barclays, BMO Capital Markets, and BTIG, among others. The proceeds from this offering will predominantly focus on acquiring Bitcoin from the open market.
As stated in the prospectus, “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 fresh stock sales plan notably follows a previous ATM offering that aimed to raise up to $1.5 billion.
MARA has embraced a funding strategy championed by prominent figures in the industry, notably Michael Saylor, involving raising funds through equity and convertible bond offerings. The mining operation currently holds 46,376 BTC in its treasury, positioning it as the second-largest holder of Bitcoin among publicly traded companies, second only to Strategy’s 506,137 BTC.
The decision to purchase Bitcoin in the open market was initiated last year, diverging from the traditional mining approach whereby miners could generate Bitcoin at a theoretical discount to the spot price. This shift in strategy has been influenced by the challenges faced by the industry following last year’s halving, which reduced mining rewards by half, tightening profit margins amid rising operational costs. Consequently, the strategy of acquiring Bitcoin alongside mining has emerged as a more favorable option for miners.
For further insights into this evolving landscape, you can read more here: Bitcoin Mining Is So Rough a Miner Adopted Michael Saylor’s Successful BTC Strategy.
