MARA Holdings has announced plans to sell $2 billion in stock to increase its Bitcoin holdings. This move mirrors Michael Saylor's strategy of leveraging market offerings to attract investment.
MARA Holdings' New Strategy
On March 28, MARA Holdings, formerly Marathon Digital, filed a Form 8-K and prospectus with the Securities and Exchange Commission, announcing an agreement with investment giants including Cantor Fitzgerald and Barclays. The company plans to sell up to $2 billion worth of its stock "from time to time." The proceeds will be used for general corporate purposes, including the acquisition of Bitcoin and working capital.
Company's Plans and Achievements
This initiative of MARA Holdings resembles the strategy of Bitcoin enthusiast Michael Saylor, who has used various market offerings to amass Bitcoin. Currently, MARA Holdings ranks second in terms of Bitcoin holdings among public companies, with 46,374 BTC worth about $3.9 billion.
Market Reaction to MARA's Plans
Following the announcement of the planned stock sale, MARA shares fell 8.58% to $12.47. Additionally, the company's shares dropped another 4.6% in overnight trading on March 30, according to Robinhood. Meanwhile, Bitcoin is trading just above $82,000, down 1.2% over the past 24 hours.
MARA Holdings' approach to acquiring Bitcoin through a stock sale parallels Michael Saylor's strategy. Despite the drop in the company's share price, its efforts to increase crypto assets continue.
