MARA Holdings Raises $1B for Extra Bitcoin Purchases

MARA Holdings has successfully concluded its $1 billion private offering, and part of the proceeds will be allocated to the acquisition of Bitcoin.

MARA Holdings, a Bitcoin miner, has raised approximately $1 billion by selling its convertible notes. The Bitcoin miner disclosed that a portion of the proceeds from this sale would be allocated to acquiring additional BTC, although they did not specify the precise sum.

Marathon Digital raises $1 billion to acquire additional bitcoin

The Bitcoin miner disclosed in a press release that it had generated $980 million in net proceeds from its convertible note sale, completed before the estimated offering expenses payable by the company and after the initial purchaser’s discounts and commissions were deducted.

This development is significant because MARA Holdings has disclosed that it intends to allocate a portion of the net proceeds toward acquiring additional BTC. It is important to note that the Bitcoin miner is the public company with the second-largest Bitcoin holdings, with approximately 27,000 BTC.

This development coincides with MARA’s recent announcement of its intention to raise $700 million through convertible notes that will mature in 2030. In the interim, Marathon Digital competes directly with MicroStrategy, which recently increased its private offering to $2.6 billion. A portion of the proceeds will be allocated to the software company’s acquisition of additional Bitcoin (BTC).

Nevertheless, despite MARA Holdings’ plans to acquire Bitcoin, the Bitcoin miner still has a significant amount of catching up to do with MicroStrategy. The software company’s total holdings now amount to 331,200 BTC, following the acquisition of 51,780 BTC for $4.6 billion.

Given its substantial advantage over its nearest rival, MARA, and other companies, market expert Punter Jeff thinks it is nearly impossible for any other public company to catch up with MicroStrategy now. He observed that a company seeking to implement MicroStrategy’s Bitcoin Strategy starting from scratch would be required to allocate up to $60 billion.

MARA Stock Increases

The MARA stock has experienced a substantial price increase since the commencement of trading today in response to MARA Holdings’ announcement. As indicated by Nasdaq data, the stock has experienced a nearly 3% increase. Marathon Digital’s stock is undoubtedly positively affected by its exposure to the flagship crypto.

Additionally, the Bitcoin price is approaching the $100,000 milestone and is hitting new highs, which is encouraging for companies such as MicroStrategy and MARA Holdings, which have exposure to BTC. Intriguingly, MarketWatch data indicates that the MARA stock is down year-to-date (YTD), which is unexpected given that the stock’s performance is anticipated to be influenced by Bitcoin’s success this year. Nevertheless, MARA’s stock has experienced a more than 100% increase in the past year.