MARA Announces $2B Stock Offering to Expand Bitcoin Holdings
MARA Holdings Inc. has unveiled plans for a $2 billion stock offering aimed at increasing its Bitcoin reserves. This strategic move aligns with the company’s aggressive expansion efforts in the crypto space.
Details of the Stock Offering
In a March 28 Form 8-K filing with the Securities and Exchange Commission (SEC), MARA outlined its collaboration with several major investment firms. The offering will be conducted “from time to time” under a new at-the-market (ATM) program, giving the company the flexibility to raise capital when needed.
- MARA intends to use proceeds for general corporate purposes, with a strong emphasis on acquiring more Bitcoin.
- Sales will occur through firms like Barclays, Cantor Fitzgerald, and Guggenheim Securities, either directly on Nasdaq or via private negotiations.
- There is no fixed timeline or volume requirement for the stock sales, allowing MARA to adapt to market conditions.
Impact on MARA Stock
Following the announcement, MARA’s stock experienced a sharp decline, reflecting investor concerns.
- As of March 30, MARA shares were trading at $11.89, down 4.6% in overnight trading.
- This followed an 8.6% drop on March 28, indicating a bearish reaction to the offering.
Despite the dip, MARA remains committed to its long-term “HODL” strategy, under which it retains all mined Bitcoin and purchases additional BTC to build its holdings.
MARA’s Growing Bitcoin Reserves
MARA currently holds over 46,000 BTC, valued at nearly $4 billion, making it one of the largest corporate Bitcoin holders.
- The latest offering follows a $1.5 billion ATM program launched last year.
- In November 2024, MARA raised $1 billion through a zero-coupon convertible note sale, further boosting its Bitcoin stockpile.
This aggressive accumulation strategy mirrors that of MicroStrategy (MSTR), which recently announced plans to raise up to $21 billion through its STRK preferred stock offering as part of its “21/21” roadmap.
Strong Financial Performance in 2024
MARA’s decision to expand its Bitcoin holdings follows a profitable fiscal year.
- Q4 2024 revenue reached $214.4 million, marking a 37% increase from the previous quarter.
- The company reported a net income of $528.3 million, a staggering 248% year-over-year growth.
- Adjusted EBITDA surged 207% to $794.4 million, setting new industry benchmarks.
Expansion into Renewable Energy
Last month, MARA finalized the acquisition of a wind farm in Hansford County, Texas, a move that underscores its commitment to sustainable Bitcoin mining.
- The site features 114 megawatts (MW) of wind power and 240 MW of interconnection capacity.
- This renewable energy project will help power older mining rigs, ensuring their continued operation rather than retirement.
Looking Ahead
MARA’s aggressive stock offering and Bitcoin accumulation strategy highlight its confidence in long-term crypto adoption. While the market has reacted negatively in the short term, the company’s financial strength and renewable energy investments could position it for sustained growth in the evolving digital asset space.
