TLDR
- MARA holdings is going to sell up to $2 billion in stock.
- They want to add more Bitcoin to their balance sheet.
- The company’s CEO is taking a “full HODL approach”.
MARA Holdings Inc (MARA), the Bitcoin mining giant formerly known as Marathon Digital, is betting big on Bitcoin yet again.
This time, the company is looking to sell up to $2 billion in stock to add more Bitcoin to its reserves, revealing a bold plan similar to that of Strategy and MetaPlanet. If you’re a Bitcoin investor, MARA shareholder, or just a crypto enthusiast, here’s the scoop on what this move could mean for everyone’s ports.
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Saylor-Inspired Moves
According to a March 28 filing with the SEC, MARA Holdings announced its plan to initiate an at-the-market (ATM) agreement with financial heavyweights including Cantor Fitzgerald and Barclays. The goal? To sell stock “from time to time” for a total value of up to $2 billion.
The proceeds from the stock sales, MARA stated, would be used for “general corporate purposes, including the acquisition of Bitcoin and for working capital.”
The strategy mirrors the playbook of Michael Saylor, the executive chairman of Strategy (formerly MicroStrategy), who is known for using various market offerings, including stock sales, to accumulate Bitcoin. Strategy holds the largest corporate Bitcoin stash, currently standing at 506,137 BTC valued at roughly $42.4 billion.
For MARA, however, this isn’t uncharted territory. The company already boasts a significant Bitcoin holding (most of which they mined themselves), sitting pretty with 46,374 BTC, worth about $3.9 billion as per Bitbo data. This places MARA second on the list of public companies with the largest Bitcoin holdings, trailing only behind Strategy.
Going “Full HODL”
MARA’s ambitious Bitcoin play should not surprise those who have followed the company closely. Back in July, Fred Thiel, MARA’s CEO, made it clear that the company was committed to “a full HODL approach”.
Unlike many crypto miners who sell the Bitcoin they mine to fund operations, Thiel announced that MARA would hold onto the Bitcoin it mines and even purchase more.
The decision marks a unique shift in how crypto miners operate. By choosing to grow its reserves instead of liquidating to cover costs, MARA is positioning itself as a miner and a long-term believer in Bitcoin’s value proposition.
Not MARA’s First Rodeo
This latest stock sale isn’t MARA’s first attempt to raise hefty funds to stack Bitcoin. The company had already made a similar offering in early 2022, where it offered up to $1.5 billion worth of shares. Additionally, in November, MARA issued $1 billion of zero-coupon convertible senior notes, also intended to fuel the company’s Bitcoin acquisition strategy.
MARA is all-in on its Bitcoin-first narrative, which seems to be true for other companies that believe in BTC. These funding strategies exemplify its commitment to accumulating and holding Bitcoin, aiming to leverage its reserves as a key part of its long-term growth plan.
What This Means for Bitcoin Investors and MARA Shareholders
For Bitcoin investors and MARA shareholders, there are a few angles to consider:
- Impact on Bitcoin’s Market Sentiment – If MARA’s stock sale leads to Bitcoin purchases (which it will), it could help further solidify Bitcoin’s position as a long-term investment asset (it will), potentially boosting market sentiment (depends on the day, doesn’t it?).
- Risk and Reward – MARA’s faith in Bitcoin is undeniable, but such heavy dependence on the volatile crypto market comes with risk and the potential for greater rewards. Investors’ ability to weather Bitcoin’s price swings will play a role in the company’s overall success.
- Following Michael Saylor’s Footsteps – It’s hard not to notice that MARA is mirroring the playbook of Michael Saylor, whose moves have both earned praise and faced intense criticism.
A Bold Bet in a Volatile Market
MARA’s decision to double down on Bitcoin is a bold move, no doubt. It reflects growing confidence in Bitcoin as an asset class and its potential role in corporate treasuries. However, it’s not without its share of risks, especially in a market that’s anything but predictable.
Cryptocurrency is still a young buck, and there are still plenty of growing pains. While MARA’s push to hold and grow its Bitcoin reserves may inspire long-term confidence, investors should weigh the associated risks carefully.
If you’re an investor in MARA or just someone watching the world of Bitcoin unfold, this is definitely a story to keep on your radar. Will MARA scale new heights or will its stock sale strategy face turbulence? Only time will tell.
