Key Takeaways
- Marathon filed for a $2 billion stock offering to buy more Bitcoin.
- The company currently holds 46,376 BTC, second only to MicroStrategy.
- Share dilution and Bitcoin price volatility remain key risks.
Marathon Digital Holdings announced plans to raise up to $2 billion through an at-the-market (ATM) stock offering to purchase more Bitcoin and fund general corporate operations.
Use of proceeds
According to a March 30 SEC filing, the company will use proceeds from the sale primarily to grow its Bitcoin holdings, which currently stand at 46,376 BTC—making Marathon the second-largest publicly traded holder after MicroStrategy.
Company statement
The company stated:
We believe we are the second largest holder of bitcoin among publicly traded companies.
Marathon also uses options and lending strategies to increase yield on its Bitcoin assets.
Growth strategy
Marathon’s new capital raise follows the strategy seen at MicroStrategy, which has used public market offerings to build a large Bitcoin reserve.
Marathon’s holdings have more than tripled from early 2024 when it held 13,726 BTC.
Shareholder impact
The offering could dilute existing shareholders, as more shares are issued to the public.
Marathon’s stock (MARA) was trading around $12.47 as of March 31, down from a 52-week high of $24, according to Yahoo Finance.
CEO’s perspective
CEO Fred Thiel continues to promote a long-term outlook on Bitcoin, advising small, consistent monthly investments.
However, the company’s significant exposure to Bitcoin also brings risk, especially during market downturns.
Strategic positioning
The move further cements Marathon’s position as a major player in Bitcoin mining while it expands beyond core operations to treat Bitcoin as a strategic asset.
