MARA raised 2 billion USD to buy more Bitcoin, reinforcing the "Hodl" strategy

MARA Holdings, a Bitcoin mining company, has just announced plans for the issuance of an additional $2 billion worth of shares to raise capital to continue purchasing Bitcoin on the market, maintaining a long-term “Hodl” strategy. This is the company’s latest move to raise funds through the stock market to increase the amount of BTC held.

According to the Form 8-K and the new prospectus filed with the U.S. Securities and Exchange Commission (SEC), MARA has established a direct stock issuance program (ATM) with the participation of several major investment banks such as Barclays, BMO Capital Markets, BTIG, Cantor Fitzgerald, and some other institutions. The proceeds from this offering will primarily be used to purchase additional Bitcoin on the market.

“We intend to use the funds raised from this issuance for general corporate purposes, including the purchase of Bitcoin and to supplement working capital,” MARA stated in the prospectus.

This is the latest stock issuance following the previous ATM program aimed at raising 1.5 billion USD for the company.

MARA is implementing Michael Saylor’s strategy, raising funds through the issuance of stocks and convertible bonds to continuously purchase Bitcoin on the market. Currently, the company holds 46,376 BTC in reserves, becoming the second largest publicly traded company holding Bitcoin, after MicroStrategy with 506,137 BTC.

The strategy of buying Bitcoin on the market has been adopted by MARA since last year, even though mining BTC can help the company acquire Bitcoin at a lower price than the market. However, the Bitcoin mining industry has become more challenging after last year’s halving event, when the block reward was cut in half, while operating costs have been increasing. This makes buying Bitcoin on the market combined with mining a more reasonable strategy to optimize profits.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making any decisions. We are not responsible for your investment decisions.

Bitcoin will fluctuate between 80,000 and 150,000 USD in 2025.

• The CEO of Marathon Digital recommends investing a small amount of money in Bitcoin each month.
• The MARA mining company lends 7,377 BTC to third parties in 2024

Han Xin

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