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- MARA is launching a $2 billion stock offering to expand its Bitcoin holdings, following a strategy similar to MicroStrategy.
- As the second-largest public Bitcoin holder, aiming to increase BTC reserves while adhering to a full HODL strategy.
- Backed by Cantor Fitzgerald and Barclays, with funds allocated for Bitcoin purchases and operational growth.
MARA Holdings Inc., formerly known as Marathon Digital, has taken a bold step to expand its Bitcoin holdings through a monumental $2 billion stock offering initiative. This move marks a strategic shift for the company as it looks to strengthen its position in the cryptocurrency market, following a path similar to that of Strategy (previously MicroStrategy), a major corporate player in the crypto space.
Currently, MARA stands as the second-largest public holder of Bitcoin, with an impressive 46,374 BTC in its portfolio. This places the company in a prime position to capitalize on the rising institutional interest in digital assets, especially Bitcoin. With the new $2 billion stock offering, MARA is set to increase its Bitcoin acquisition. It aims to not only retain its mined tokens but also acquire additional units to fortify its long-term strategy.
However, the company’s stock performance has recently faced some headwinds. On March 28, MARA’s shares dropped by 8.58%, falling to $12.47, and the downward trend continued with a decline to $11.89 in after-hours trading on March 30. This dip coincided with Microsoft’s decision to pause its plans for expanding data centers in the U.S. and Europe. The move raised concerns about the availability of infrastructure for cryptocurrency mining operations. Despite this market turbulence, MARA remains resolute in its mission to accumulate more Bitcoin.
The new capital-raising effort builds on MARA’s previous financial initiatives. In early 2023, the company completed a $1.5 billion stock offering, followed by a $1 billion issuance of zero-coupon convertible senior notes in November 2023. These efforts align with CEO Fred Thiel’s commitment to a ‘full HODL’ strategy. This approach involves retaining all mined Bitcoin while continuously seeking to increase the company’s holdings
MARA’s latest initiative is backed by significant financial institutions, including Cantor Fitzgerald and Barclays, which will assist in the at-the-market offering arrangement. According to a filing with the SEC on March 28, the company plans to sell shares periodically. The proceeds will be earmarked for further Bitcoin acquisitions and supporting operational needs. This approach mirrors that of Michael Saylor’s strategy, which has accumulated over 506,000 Bitcoin through similar financial mechanisms.
As institutional and sovereign interest in cryptocurrency continues to rise, MARA is strategically pivoting toward becoming a major Bitcoin accumulator. This shift signals a broader trend within the corporate cryptocurrency landscape. With Bitcoin trading at $81,531, despite a modest 2.36% decline over 24 hours from its recent $83,500 peak, MARA is aggressively pursuing Bitcoin acquisition. This move could set the stage for a new phase of growth within the crypto mining and investment space
The unfolding story of MARA Holdings Inc. highlights the growing convergence between traditional finance and cryptocurrency, with companies like MARA leading the charge in integrating digital assets into their long-term business strategies. As the market matures, the company’s focus on Bitcoin could strengthen its position. This strategy may establish it as a significant player in the evolving landscape of corporate cryptocurrency investments.
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