In this post:
- In order to bolster its assets and purchase additional Bitcoin, MARA assets is initiating a $2 billion stock offering.
- The business has arranged an at-the-market (ATM) equity program with significant investment banks to make the stock sale easier.
- MARA currently owns 46,376 BTC and is using Michael Saylor’s technique of issuing shares to purchase Bitcoin.
In order to purchase more Bitcoin, the mining business MARA Holdings is launching a new $2 billion public stock offering.
This action follows the company’s “Hodl” goal and keeps up its plan of raising capital to get Bitcoin onto the open market.
MARA establishes a new ATM equity scheme to finance the purchase of Bitcoin
A recent prospectus and Form 8-K submitted to the U.S. Securities and Exchange Commission (SEC) state that MARA has established an at-the-market (ATM) equities program with a number of investment banks serving as agents, including Barclays, BMO Capital Markets, BTIG, and Cantor Fitzgerald.
The shares will occasionally be offered at MARA Holdings’ discretion in accordance with the prospectus supplement. The purchase of Bitcoin on the open market will be the primary use of the offering’s revenues.
In its prospectus, MARA stated, “At this time, we plan to use the net proceeds from this offering for working capital and general corporate purposes, including the purchase of Bitcoin.”
With a market valuation of $4.7 billion and a focus on financial services, the firm has a healthy liquidity position, as seen by its current ratio of 4.94, which shows that it can cover short-term obligations.
The shares will be sold via what is known as a “at the market offering” or other ways that are agreed upon. A commission of up to 3% of each sale’s gross revenues is due to the agents.
The company, which focuses on financial services and has a market capitalization of $4.7 billion, has a strong liquidity position, as seen by its current ratio of 4.94, which demonstrates its ability to meet short-term obligations.
A “at the market offering” or other mutually agreed-upon methods will be used to sell the shares. The agents are entitled to a commission of up to 3% of the gross proceeds from each sale.
MARA increases its Bitcoin holdings by adopting Saylor’s strategy
MARA’s present actions are in line with Michael Saylor’s strategy of issuing convertible bonds and shares in order to amass Bitcoin on the open market. The miner now holds 46,376 BTC in its treasury, which is second only to MicroStrategy’s 506,137 BTC among publicly traded companies.
MARA has become more and more dependent on purchasing Bitcoin on the open market, even though she mines it. In acknowledgment of the growing difficulty of mining Bitcoin at a discount to the current price, the company implemented this strategy last year.
The most recent Bitcoin halving event, which cut mining incentives in half and put pressure on profit margins against rising operating costs, has put the sector under extreme strain.
As a result, buying Bitcoin on the open market has emerged as a somewhat more advantageous tactic for miners looking to expand their holdings and continue mining.
MARA’s move comes at a time when institutional interest in Bitcoin has remained high despite rising volatility. With a staggering total shareholder return of 2881.63% over the past five years, MARA Holdings has made great progress in changing its business approach.
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