Bitcoin Mining Company MARA Holdings Plans to Raise Up to $2 Billion for Bitcoin Purchases
On the 28th, Bitcoin mining company MARA Holdings announced plans to raise funds through the sale of up to $2 billion in stock to purchase more Bitcoin, emulating the strategy of Strategy founder Michael Saylor. However, MARA’s stock price still closed down 8.58% on the 28th, having declined over 25% year-to-date.
(Background: Mining company Marathon increased its Bitcoin holdings by $1.1 billion; Michael Saylor optimistic about joining the Nasdaq 100 index.)
(Additional context: Mining company Marathon raised $300 million in excess; added 4,144 Bitcoin, is direct purchasing more profitable than mining?)
In an 8-K form and prospectus submitted to the U.S. Securities and Exchange Commission (SEC) on the 28th, MARA Holdings stated that it has entered into agreements with several investment giants, including Cantor Fitzgerald and Barclays, allowing for the periodic sale of up to $2 billion worth of company stock at market price.
MARA indicated that it plans to use the proceeds from this fundraising for general corporate purposes, including the purchase of Bitcoin and as working capital. This operational approach mirrors the strategy of Strategy founder Michael Saylor, who has accumulated a total of 506,137 Bitcoin, valued at $42.4 billion, through various market operations such as stock issuance.
According to Bitbo data, MARA Holdings is the second-largest publicly traded company by Bitcoin holdings, currently holding 46,374 Bitcoin, valued at approximately $3.9 billion, just behind Strategy.
Last July, MARA CEO Fred Thiel stated that the company would fully hold its mined Bitcoin long-term, rather than selling it like typical miners to cover operational costs. Instead, it would further purchase more Bitcoin as reserve assets.
The proposed stock issuance continues a similar operation from early last year, when MARA announced it would issue up to $1.5 billion in stock. In November of last year, MARA also issued $1 billion in zero-coupon convertible bonds, planning to use most of the funds for Bitcoin purchases.
Fundraising for Bitcoin Purchases Fails to Support Stock Price
However, MARA’s stock price closed down 8.58% at $12.47 on the 28th. The previous day, due to market reports of Microsoft canceling its investment plans for new data centers in the U.S. and Europe, cryptocurrency mining stocks faced overall selling pressure. Year-to-date, MARA’s stock price has declined over 25%.
According to Robinhood data, MARA’s after-hours stock price fell another 3.7% on the 30th, reaching $12.
