- MARA discloses plan to sell up to $2 billion in shares to purchase additional Bitcoin.
- The move replicates Saylor’s approach that built Strategy’s 506,137 BTC treasury.
- Bitcoin miner currently holds the second-largest corporate Bitcoin reserve at 46,374 BTC.
Bitcoin mining giant MARA Holdings, formerly known as Marathon Digital, is pursuing a Bitcoin purchase strategy that closely resembles Michael Saylor’s playbook at Strategy. According to a Form 8-K and prospectus filed with the Securities and Exchange Commission on March 28, the company has entered into an at-the-market agreement that could see it sell up to $2 billion worth of its stock.
The filing reveals that investment heavyweights, including Cantor Fitzgerald and Barclays, will handle the stock sales. The filing will take place “from time to time” rather than in a single offering. MARA stated its intentions for the potential capital raise, noting: “We currently intend to use the net proceeds from this offering for general corporate purposes, including the acquisition of Bitcoin and for working capital.”
This approach directly mirrors the strategy pioneered by Bitcoin proponent Michael Saylor, who transformed Strategy into the largest corporate Bitcoin holder through similar capital-raising activities. Strategy has used various market offerings to accumulate 506,137 BTC.
MARA Holdings has earned a name as the second-largest corporate Bitcoin holder. Its treasury currently holds 46,374 BTC. The gap between MARA and Strategy suggests the mining company has ground to cover if it aims to challenge for the top position.
The company’s Bitcoin accumulation strategy was formalized in July 2023. CEO Fred Thiel stated that MARA would follow a “full HODL” strategy. He also opted to retain all Bitcoin mined through its operations rather than selling it to fund business activities.
Related: California Passes “Bitcoin Rights Bill,” Eliminating Tax Restrictions For Payments
The $2 billion stock sale plan follows previous capital-raising efforts by the company. Early last year, MARA conducted a similar offering that made $1.5 billion worth of shares. In November, the company issued $1 billion in zero-coupon convertible senior notes and announced plans to allocate a good portion of the proceeds toward purchasing additional Bitcoin.
The announcement comes during a period of price consolidation for Bitcoin, which is trading in the $81,000 range at press time after falling 2.5% over the past 24 hours. The overall cryptocurrency market has also experienced downward pressure, with the global crypto market capitalization down 2.8% to $2.63 trillion.
