MARA Holdings Inc Announces It Will Seek to Raise Up to $2 Billion via Stock Offering to Expand Bitcoin Reserves

MARA Holdings Inc MARA/USD on Monday announced it sought to raise up to $2 billion through a stock offering to expand Bitcoin BTC/USD reserves

Mara Holdings Inc (NASDAQ:MARA) on Monday said it planned to sell shares of common stock to raise up to $2 billion to expand its bitcoin holdings.

What Happened: The company disclosed in a filing with the U.S. Securities and Exchange Commission that it has entered into an at-the-market sales agreement with several financial institutions.

The institutions, which include Barclays Capital Inc, BMO Capital Markets and Cantor Fitzgerald Securities, will be selling shares of Mara’s common stock in an aggregate amount not to exceed $2 billion.

Net proceeds from the share sale will be used to expand Mara’s bitcoin holdings and for general and administrative purposes, the filing showed.

Mara added that it has a long-term strategy to mine and hold bitcoin as the company plans to use the cryptocurrency to create future growth.

The company, which had 46,374 bitcoin in its possession as of March 31, is the second-largest public company holder of bitcoin after Michael Saylor’s Strategy (NASDAQ:STR) which holds over 506,000 bitcoin.

Why It's Important: In another development, video game retailer GameStop Corp (NYSE:GME) is planning to get into cryptocurrency in a big way.

Inspired by Saylor’s playbook, GameStop plans to sell shares of convertible notes to raise $1.3 billion, which it will use to buy bitcoin, according to a Monday report in The Wall Street Journal.

The report adds that GameStop is also planning to adjust its financial strategy. The company is planning to add bitcoin as an official reserve asset on its balance sheet.

GameStop is already known for its bold moves in response to changing market trends. Earlier this year, the company announced plans to close all its Canadian stores by spring 2024 as part of a broader restructuring effort.