MARA Holdings Inc. Plans to Offer Up to $2 Billion Worth of its Stock to Fund Bitcoin Purchases

MARA Holdings Inc., one of the largest Bitcoin mining companies in the world, has announced plans to offer up to $2 billion worth of its stock to fund additional Bitcoin purchases.

MARA is offering up to $2 billion of its stock to fund additional Bitcoin purchases, the company announced in a Form 8-K and prospectus filed with the Securities and Exchange Commission on Monday.

The Florida-based firm, formerly known as Marathon Digital, has entered into an at-the-market agreement with Cantor Fitzgerald, Barclays, and Guggenheim Securities.

These firms will sell MARA shares “from time to time” directly on Nasdaq or via negotiated transactions, according to the filing. The flexible approach gives MARA the ability to tap into the market as needed.

“We currently intend to use the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin and for working capital,” MARA said. The company did not specify a timeline or volume commitment for the stock sales.

This move closely follows the strategy used by Michael Saylor’s Strategy (formerly MicroStrategy), the largest corporate Bitcoin holder. Strategy has used various market offerings, including stock sales, to amass 506,137 BTC valued at approximately $42.4 billion.

MARA Holdings currently holds the second-largest Bitcoin reserves among public companies, with 46,374 BTC in its coffers, valued at around $3.9 billion according to Bitbo data.

The latest offering follows previous financial maneuvers by MARA to increase its Bitcoin holdings. Last year, the company launched a similar offering of up to $1.5 billion of its shares.

In November, MARA also issued $1 billion of zero-coupon convertible senior notes, planning to use most of those proceeds for more Bitcoin purchases.

MARA CEO Fred Thiel announced in July that the company was going “full HODL,” a strategy that diverges from typical crypto mining practices.

Usually, miners sell a portion of the Bitcoin they mine to fund operating expenses. However, MARA plans to keep all mined Bitcoin and purchase more of the cryptocurrency to maintain in reserve. This approach represents a long-term bet on Bitcoin’s value appreciation.

The stock offering announcement comes amid a downturn for MARA’s shares. The company’s stock closed down 8.58% at $12.47 on Monday, according to Google Finance.

MARA shares fell another 4.6% to $11.89 in overnight trading on Thursday after reports that Microsoft abandoned plans to build new data centers in the US and Europe rattled crypto mining stocks a day earlier. Meanwhile, Bitcoin was trading just above $82,000, down 1.2% over 24 hours after falling from a local high of around $83,500.

Despite the recent stock price decline, MARA reported strong financial results for Q4 2024, generating $214.4 million in revenue, a 37% increase from the previous quarter.

The company also reported a net income of $528.3 million, showcasing a 248% year-over-year jump. Moreover, MARA’s adjusted EBITDA surged 207% to $794.4 million, setting a new benchmark in the mining sector.

In February, MARA completed the acquisition of a wind farm in Hansford County, Texas, which offers 114 megawatts of wind power and 240 MW of interconnection capacity.

The wind farm will be used to power older mining rigs that would otherwise have been retired, aligning with growing industry concerns about the energy consumption of Bitcoin mining operations.