Stock Sale to Fund More Bitcoin Purchases!

MARA Holdings, formerly known as Marathon Digital, announced in a March 28 SEC filing that it has entered an agreement with investment firms, including Cantor Fitzgerald and Barclays, to sell up to $2 billion worth of stock. The company stated that proceeds will be used for general corporate purposes, including acquiring more Bitcoin and covering working capital expenses.

This strategy mirrors that of MicroStrategy, the largest corporate holder of Bitcoin, which has used stock offerings to acquire 506,137 BTC, valued at approximately $42.4 billion.

MARA’s Expanding Bitcoin Holdings!

MARA Holdings is the second-largest publicly traded Bitcoin holder, with 46,374 BTC, worth around $3.9 billion. In July, CEO Fred Thiel stated that the company had adopted a “full HODL” approach, meaning it would not sell mined Bitcoin to fund operations but instead continue accumulating the asset.

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This new stock sale follows a similar move in early 2023, when MARA Holdings sold up to $1.5 billion worth of shares. Additionally, in November, the company issued $1 billion in zero-coupon convertible senior notes, primarily to fund more Bitcoin purchases.

Market Reaction and Bitcoin Price Update

Following the announcement, MARA‘s stock closed 8.58% lower on March 28 at $12.47. The stock continued to decline, falling another 4.6% in overnight trading to $11.89 on March 30. This drop comes amid broader concerns in the crypto mining sector after reports suggested Microsoft had abandoned plans to invest in new data centers.

Meanwhile, Bitcoin is trading just above $82,000, down 1.2% in the past 24 hours, after briefly touching a local high of around $83,500.

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