Bitcoin mining company MARA Holdings (MARA) has announced a new $2 billion stock offering to raise funds for additional Bitcoin purchases, reinforcing its long-term “Hodl” strategy. This latest move continues the company’s approach of using equity markets to expand its BTC holdings.
According to a Form 8-K and a new prospectus filed with the U.S. Securities and Exchange Commission (SEC), MARA has established an at-the-market (ATM) equity program with investment banks including Barclays, BMO Capital Markets, BTIG, Cantor Fitzgerald, and others. The proceeds from this offering, which will see brokers periodically selling shares of the miner, will be primarily used to acquire Bitcoin on the open market.
“We currently intend to use the net proceeds from this offering for general corporate purposes, including the acquisition of Bitcoin and for working capital,” MARA stated in its prospectus.
This latest stock sale follows a previous ATM offering that aimed to raise up to $1.5 billion for the miner.
MARA has adopted Michael Saylor’s strategy of raising funds through equity and convertible bond offerings to continuously buy Bitcoin on the open market. The company now holds 46,376 BTC in its treasury, making it the second-largest Bitcoin stash among publicly traded companies, behind MicroStrategy’s 506,137 BTC.
The plan to buy Bitcoin on the open market was implemented last year, despite miners theoretically being able to mine BTC at a discount to spot prices. However, the industry has faced increasing challenges since last year’s halving, which cut mining rewards in half and squeezed profit margins due to rising operational costs. This has made a combination of open-market Bitcoin purchases and mining a more viable strategy for miners.