Bitcoin mining company Mara Holdings Inc. (MARA) has announced plans to offer up to $2 billion worth of stock to buy additional bitcoins.
Key Details:
The move was disclosed in Form 8-K and Prospectus filed with the SEC on March 28.
It has entered into agreements with investment firms such as Cantor Fitzgerald and Barclays to raise funds.
The proceeds will be used for Bitcoin purchases and corporate needs.
Mara Holdings’ Focus on Bitcoin
The company (formerly known as Marathon Digital) is adopting a Bitcoin storage strategy similar to MicroStrategy.
According to Bitbo Data, Mara Holdings holds **46,374 Bitcoins** (worth around $3.9 billion), making it the second among public companies.
MicroStrategy tops the list with 506,000+ Bitcoins ($42.4 billion).
Hold on for dear life” policy
CEO Fred Thiel has made it clear that the company will not sell its mined Bitcoins, but will continue to buy more.
Last year, Mara also had a $1.5 billion stock offering, while in November it issued $1 billion of zero-coupon convertible notes.
Market reaction
On March 28, MARA shares closed at $12.47 (down 8.58%).
Shares fell to as low as $11.89 on the night of March 30 following the announcement.
Analysis: Mara Holdings’ move reflects its long-term view of Bitcoin, but investors should also consider the risks of share dilution and market volatility.
