Mara, a leading bitcoin miner, is poised to make history with its record-breaking $2 billion stock offering, marking a significant move in the industry’s shift towards buying bitcoin in the open market.
The mining industry has become challenging after last year’s halving cut mining rewards by half, squeezing profit margins on the back of rising costs. As a result, buying bitcoin in the open market alongside mining has emerged as a relatively better strategy for miners. Mara, a leading bitcoin miner, has adopted this approach, which involves raising funds through equity and convertible bond offerings and purchasing bitcoin in the open market.
The miner now holds 46,376 BTC in its treasury, making it the second-largest bitcoin stash among publicly traded companies. This significant holding demonstrates Mara’s commitment to buying more bitcoin and expanding its presence in the market.
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The $2 billion stock offering will see brokers selling shares of the miner from time to time.
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The proceeds of the offering will be used mainly for the acquisition of bitcoin in the open market.
- Mara currently intends to use the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin and working capital.
‘Mining is a very capital-intensive business.’ ‘We’re not just buying BTC, we’re buying a store of value.’
Michael Saylor is an American entrepreneur and investor, best known for his advocacy of Bitcoin.
He serves as the CEO of MicroStrategy, a business intelligence firm he co-founded in 1989.
Saylor has been a vocal supporter of 'Bitcoin's decentralized nature and limited supply make it an attractive store of value.' He argues that this makes it an attractive store of value.
Saylor has also invested in other cryptocurrencies, including Ethereum and Solana.
Mara’s adoption of Michael Saylor‘s strategy of raising funds through equity and convertible bond offerings and buying bitcoin in the open market demonstrates its commitment to this approach. As the mining industry continues to evolve, it will be interesting to see how Mara’s strategy plays out in the market.
