Financial Insights That Matter
- MARA is raising $2 billion through a stock sale to buy more Bitcoin.
- It’s following the Saylor playbook to expand its Bitcoin reserves.
- GameStop joins other firms eyeing Bitcoin as a treasury reserve asset.
Bitcoin miner MARA Holdings is turning to public markets once again — this time with a $2 billion stock sale to grow its Bitcoin treasury, following a playbook made famous by Strategy’s Michael Saylor.
According to a new Securities and Exchange Commission filing, MARA plans to sell up to $2 billion worth of common stock through an at-the-market offering with major brokers including Barclays and Cantor Fitzgerald.
The proceeds will be used for general corporate purposes, “including the acquisition of bitcoin,” the company said in its prospectus.
The move continues MARA’s shift toward a treasury-heavy strategy. The company already holds over 46,000 Bitcoin, making it the second-largest public holder behind Strategy, which has more than half a million Bitcoin.
MARA also adopted a “full HODL” policy last year, vowing to retain all self-mined Bitcoin and make periodic open market purchases.
By raising funds to buy more Bitcoin, MARA is effectively doubling down on a strategy that has turned Strategy into a proxy Bitcoin exchange-traded fund — and sent its stock soaring more than 2,000% since 2020.
Bitcoin treasury trend
MARA isn’t the only company eyeing Bitcoin as a treasury asset. GameStop shares jumped over 14% this week after its board approved a plan to invest in Bitcoin.
While it’s unclear how much of its $4.8 billion in reserves the meme-stock retailer will commit, GameStop’s pivot toward Bitcoin adds momentum to the wave of corporate treasury plays.
Other firms, like Japan’s Metaplanet, have also seen outsized returns from Bitcoin treasury plays.
But the approach isn’t without risk.
Bitcoin has fallen over 23% from its January highs, and newer entrants have already felt the sting of volatility.
Still, MARA, like others in the space, continues to lean into the long-term thesis.
CEO Fred Thiel has repeatedly called Bitcoin “the world’s best treasury reserve asset,” and with this latest $2 billion war chest, the miner looks set to keep buying, regardless of short-term price swings.
Crypto market movers
- Bitcoin has lost 0.7% over the past 24 hours and is trading at $83,300.
- Ethereum is down 2.1% over the same period to $1,840.
What we’re reading
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at [email protected].
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