MARA Holdings (MARA) Launches $2 Billion Stock Offering to Buy More Bitcoin

This move is part of the company's ongoing efforts to expand its holdings, sticking to its "Hodl" approach of holding Bitcoin long-term.

Bitcoin mining firm MARA Holdings (NASDAQ:MARA) is launching a new stock offering that could fetch up to $2 billion, continuing its strategy of buying Bitcoin directly from the market.

The firm is planning to sell shares periodically through a group of investment banks, including Barclays, BMO Capital Markets, BTIG, and Cantor Fitzgerald, according to a recent filing with the U.S. Securities and Exchange Commission (SEC).

This will allow brokers to sell shares at prevailing market prices, with the proceeds largely used to purchase more Bitcoin.

The filing discloses that MARA intends to use the funds for “general corporate purposes,” with a significant portion allocated for Bitcoin acquisition and working capital.

This offering follows a previous at-the-market (ATM) plan announced in December 2022, which aimed to raise up to $1.5 billion for similar purposes.

MARA’s strategy appears to be heavily focused on expanding its Bitcoin holdings, sticking to its "Hodl" approach of holding the cryptocurrency long-term.

This contrasts with its stance on mining, which has seen setbacks in recent quarters.

Recently, MARA reported a net loss for the second quarter of 2024, attributing it to impairment charges related to its mining fleet and a decrease in bitcoin production due to planned maintenance at its main mining facility.

Despite these challenges, MARA managed to increase its bitcoin holdings during the second quarter, adding 1,048 coins to reach a total treasury balance of 46,376 BTC.

This places MARA second on the list of publicly traded companies with the largest bitcoin reserves, trailing only Strategy (NASDAQ:STRG), which currently holds 506,137 BTC.

As of Monday morning, MARA shares traded up 0.7% in pre-market trading, while bitcoin rose 0.3% to trade above the $78,000 level.