MARA Holdings Plans $2 Billion Stock Offering to Expand Bitcoin Holdings

TLDR

Table of Contents

MARA Holdings is offering $2 billion in stock to fund additional Bitcoin purchases
The company already holds over 46,000 BTC worth nearly $4 billion
The offering will be managed by firms like Barclays, Cantor Fitzgerald, and Guggenheim Securities
MARA is following a “full HODL” strategy, keeping all mined Bitcoin and buying more
The company’s stock dropped 8.6% on March 28 and another 4.6% in overnight trading

The Details Behind the Offering

MARA Holdings Inc. has announced plans to offer $2 billion worth of its stock to fund additional Bitcoin purchases. The Florida-based Bitcoin miner disclosed this move in a March 28 Form 8-K filing with the Securities and Exchange Commission. The company is teaming up with several major investment firms to sell shares “from time to time” under a new at-the-market offering.

In the accompanying prospectus, MARA stated that proceeds will go toward general corporate purposes. However, the company made it clear that buying more Bitcoin is high on its list of priorities. This aligns with MARA’s previously stated “full HODL” strategy.

The stock offering will be managed through firms like Barclays, Cantor Fitzgerald, and Guggenheim Securities. Sales will happen directly on Nasdaq or via negotiated transactions. This setup gives MARA flexibility to tap into the market as needed.

Market Impact and Current Holdings

As of March 30, MARA shares were trading at $11.89. This represents a 4.6% drop in overnight trading following an 8.6% decline on March 28. The stock price movement suggests some market concern about the dilution effect of the new offering.

MARA Holdings already has a lot of Bitcoin. The company holds over 46,000 BTC worth nearly $4 billion. This makes MARA the second-largest corporate holder of Bitcoin, behind only Strategy (formerly MicroStrategy).

The current market position of Bitcoin remains strong. The cryptocurrency is trading just above $82,000. This represents a 1.2% decrease over the past 24 hours after falling from a local high of around $83,500.

Strategic Expansion and Business Growth

This latest offering follows other funding moves by MARA. The company launched a $1.5 billion ATM program last year. It also completed a $1 billion zero-coupon convertible note sale in November. Both initiatives were aimed at boosting its Bitcoin holdings.

MARA’s approach mirrors that of Strategy under Michael Saylor’s leadership. Strategy recently unveiled plans to raise up to $21 billion via its STRK preferred stock offering. This is part of Strategy’s “21/21” roadmap for Bitcoin acquisition.

The plan to stack up more Bitcoin follows a profitable period for MARA. In Q4 2024, the company reported $214.4 million in revenue. This was up 37% from the previous quarter. MARA ended the year with a net income of $528.3 million, representing a 248% jump year-over-year.

MARA’s adjusted EBITDA also showed growth. It surged 207% to $794.4 million. This set a new benchmark for the mining sector. The company’s financial results show the success of its Bitcoin-focused strategy.

Last month, MARA completed an acquisition to support its mining operations. The company bought a wind farm in Hansford County, Texas. The site offers 114 megawatts of wind power and 240 MW of interconnection capacity.

This renewable energy acquisition serves a specific purpose. MARA plans to use the wind farm to power older mining rigs. These rigs would have otherwise been retired. The move shows MARA’s commitment to maintaining its mining capacity.

CEO Fred Thiel confirmed the company’s strategy in July. He said MARA was going “full HODL” and wouldn’t sell any of the Bitcoin it mined to fund operations. This differs from typical crypto miners who often sell some of their mined Bitcoin to cover costs.

Instead of selling, MARA plans to purchase more cryptocurrency to keep in reserve. This aggressive acquisition strategy shows the company’s long-term belief in Bitcoin’s value. MARA is positioned to continue growing its Bitcoin holdings with this new offering.

The timing of MARA’s offering comes during a volatile period for crypto mining stocks. Reports indicate that Microsoft abandoned plans to invest in new data centers in the US and Europe. This news rattled mining stocks the day before MARA’s announcement.

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