Bitcoin mining firm MARA Holdings (MARA) is initiating a new $2 billion stock offering aimed at acquiring more bitcoin, in line with its strategy of purchasing BTC in the open market through capital raises while adhering to its “Hodl” philosophy.
According to a Form 8-K and a recent prospectus submitted to the U.S. Securities and Exchange Commission (SEC), MARA has engaged in an at-the-market (ATM) equity program with a consortium of investment banks, including Barclays, BMO Capital Markets, BTIG, and Cantor Fitzgerald, among others. The funds from this offering, which will allow brokers to sell miner shares periodically, will primarily be allocated for acquiring bitcoin in the open market.
“Our current intention is to utilize the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin and working capital,” MARA stated in its prospectus.
This latest stock sale initiative follows a previous ATM offering that aimed to raise up to $1.5 billion for the company.
MARA has adopted the fundraising strategy of Michael Saylor, utilizing capital raised through equity and convertible bond offerings to purchase bitcoin in the open market. The miner currently holds 46,376 BTC in its treasury, making it the second-largest bitcoin reserve among publicly traded companies, surpassed only by MicroStrategy’s 506,137 BTC.
The decision to purchase bitcoin in the open market was made by the miner last year, even though mining theoretically allows for bitcoin acquisition at a lower cost than the spot price. The landscape for the industry shifted after last year’s halving event reduced mining rewards by half, tightening profit margins amidst increasing expenses. This situation rendered the strategy of buying bitcoin in the open market, in conjunction with mining, a comparatively more viable approach for miners.
Read more: Bitcoin Mining Is So Challenging a Miner Adopted Michael Saylor’s Successful BTC Strategy
