- MARA has launched a $2 billion stock offering to fund direct Bitcoin acquisitions and increase its cryptocurrency reserves.
- The company replaced a $1.5 billion ATM agreement and partnered with major banks to facilitate the new offering.
- MARA holds 46,376 BTC and pivots from mining to open market purchases amid post-halving mining profitability declines.
MARA Holdings has announced a $2 billion public stock offering to raise capital for Bitcoin purchases. The company filed a prospectus and Form 8-K with the U.S. Securities and Exchange Commission to formalize the offering. This move follows the cancellation of a previous $1.5 billion at-the-market (ATM) agreement from October 2023.
ATM Equity Program in Place
To manage the sale, MARA has established a new ATM equity program in collaboration with Barclays, BMO Capital Markets, BTIG, and Cantor Fitzgerald. These institutions will act as agents, facilitating stock sales as directed by MARA. Agents will receive up to 3 percent in commission on gross proceeds for each sale.
The funds raised from the offering by the company will primarily be redirected toward Bitcoin purchase, but will also fund general corporate expenses and enhance working capital management. MARA demonstrates an operational move beyond pure mining due to market fluctuations and declining profit possibilities.
Mining Pressures Shift Strategy
Despite being a Bitcoin miner, MARA is increasingly purchasing Bitcoin directly from the market. This approach gained traction after mining profitability declined due to reduced rewards following the most recent Bitcoin halving event. Rising operational costs further influenced the change in strategy.
The company possesses 46,376 Bitcoins which places it in second position after MicroStrategy as the leading public Bitcoin holder. The company develops its cryptocurrency holdings through equity offerings, which were initially introduced by Michael Saylor during his time at MicroStrategy.
Strong Financial Position Supports Growth
The company maintains $4.7 billion market capitalization alongside a favorable position regarding liquidity. The company demonstrated financial capability through its 4.94 value in current ratio to fulfill short-term debts. The company’s sound financial position makes it possible to continue adding digital assets through its growth strategy.
MARA clarified that this filing does not serve as an offer to sell shares in states where such activity would be restricted or require prior registration. Sales will occur in compliance with applicable securities laws and at the company’s discretion.
