Marathon Digital Holdings (MARA), one of America's largest Bitcoin mining companies, revealed plans for a $2 billion at-the-market stock offering, with 40% of proceeds aimed at expanding its Bitcoin holdings.
The offering will be executed through multiple transactions managed by investment firms including Barclays and BMO Capital Markets. Beyond Bitcoin purchases, 35% of funds will support general corporate purposes while 25% will provide working capital.
This move mirrors MARA's previous $1.4 billion offering and follows the company's dramatic expansion of Bitcoin holdings in 2024, which grew from 13,726 to 46,376 BTC. This positions MARA as the second-largest Bitcoin holder among publicly traded companies.
The strategy represents a shift from traditional mining operations toward direct market purchases, similar to MicroStrategy's approach. This pivot comes as the mining industry faces headwinds from rising energy costs and reduced Bitcoin mining rewards following the recent halving event.
"This offering strengthens our position in the digital asset space while providing flexibility to navigate market conditions," said Marathon Digital in their announcement.
Critics, including economist Peter Schiff, have questioned the sustainability of such aggressive Bitcoin acquisition strategies, calling them risky business models.
However, MARA maintains strong financials with a current ratio of 4.94, suggesting robust ability to meet short-term obligations while pursuing its expansion plans.
The announcement reflects broader changes in the cryptocurrency mining sector, as companies adapt their strategies to maintain growth amid evolving market dynamics and operational challenges.