Bitcoin miner MARA Holdings has completed its $1 billion private offering, with some of the profits slated to be used to buy more BTC.
Bitcoin mining company Marathon Digital Holdings (MARA) has raised nearly $1 billion by selling convertible notes.
The company plans to use part of the proceeds to purchase additional Bitcoin (BTC), though the exact amount has not been disclosed.
Marathon Digital Secures $1 Billion for Bitcoin Purchases
In a press release, Marathon Digital announced it had raised net proceeds of $980 million from the sale of convertible notes after deducting initial purchaser discounts and commissions but before covering estimated offering expenses.
A portion of these funds will go toward acquiring more BTC. Marathon currently holds approximately 27,000 BTC, making it the second-largest Bitcoin holder among public companies.
This funding announcement follows Marathon’s recent plan to raise $700 million through convertible notes set to mature in 2030.
The move appears to position the company as a rival to MicroStrategy, which recently increased its private offering to $2.6 billion, with some proceeds allocated for Bitcoin purchases.
Despite Marathon’s plans, it remains significantly behind MicroStrategy in terms of Bitcoin holdings. MicroStrategy recently acquired 51,780 BTC for $4.6 billion, bringing its total holdings to 331,200 BTC.
Market analyst Jeff Punter remarked on the difficulty of rivaling MicroStrategy’s position. He stated, “It is almost impossible for any other public company to catch up with MicroStrategy at this point,” adding that replicating MicroStrategy’s Bitcoin strategy would require an investment of up to $60 billion.
MARA Stock Sees Growth
Following the announcement, Marathon’s stock (MARA) has experienced a notable rise. According to Nasdaq data, the stock is up nearly 3% since trading began today.
Marathon’s exposure to Bitcoin has positively influenced its stock value, especially as BTC prices continue climbing toward the $100,000 milestone.
Interestingly, MarketWatch data reveals that MARA’s stock is down year-to-date (YTD), which some analysts find surprising given Bitcoin’s strong performance this year.
However, the stock has risen over 100% in the past year, reflecting growing interest in Bitcoin-focused companies.