MARA Holdings (MARA), a Bitcoin mining company, has announced a new $2 billion stock offering to purchase more bitcoin as part of its ongoing “Hodl” strategy. The company has filed a Form 8-K and a new prospectus with the U.S. Securities and Exchange Commission (SEC), outlining its plans to enter into an at-the-market (ATM) equity program with investment banks such as Barclays, BMO Capital Markets, BTIG, Cantor Fitzgerald, and others. The proceeds from the offering, which will see brokers selling shares of the miner periodically, will primarily be used to acquire bitcoin in the open market.
This new stock sales plan follows a previous ATM offering that aimed to raise up to $1.5 billion for the miner. MARA has adopted the strategy of raising funds through equity and convertible bond offerings, similar to Michael Saylor’s approach, and using the proceeds to purchase bitcoin in the open market. Currently, the company holds 46,376 BTC in its treasury, making it the second-largest publicly traded company in terms of bitcoin holdings, behind Strategy’s 506,137 BTC.
The decision to buy bitcoin in the open market was made by the miner last year, despite the fact that it can theoretically mine bitcoin at a discount to the spot price. However, the mining industry has become increasingly challenging after last year’s halving, which reduced mining rewards by half and squeezed profit margins due to rising costs. As a result, purchasing bitcoin in the open market, in addition to mining, has become a more attractive strategy for miners.
MARA’s move to follow in the footsteps of Michael Saylor’s successful BTC strategy is a testament to the growing trend of companies and institutions investing in bitcoin as a store of value. By adopting this strategy, MARA is positioning itself to benefit from the potential long-term growth of bitcoin, while also mitigating the risks associated with mining.
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