MARA Shares Surge 1.9% After Bitcoin Buying News, Erasing Friday’s Dip

MARA Shares Surge on Bitcoin Buying News, Announces $700 Million Offering

According to a recent SEC filing, Bitcoin miner Marathon Digital purchased roughly 6,484 Bitcoin for $618 million in cash. The Florida corporation paid an average of $95,352 per Bitcoin, including fees and expenses, and seems to have purchased near the top. According to CoinGecko data, the price of Bitcoin surged above $98,000 this morning and has since stabilized just below $95,606 as of this writing.

Marathon Announces $700 Million Offering, Plans to Boost Bitcoin Treasury to $3.3 Billion

It sounds like good news to the company’s shareholders. When trading ended on Friday afternoon, MARA shares were 1.9% lower than they were on Monday afternoon during EU trading hours. After losing 2%, Marathon’s stock, which is traded on the Nasdaq, ended the day Friday at $26.85. That dip, however, appears to have been virtually wiped by the news of Bitcoin purchases. The business further declared that it will begin raising up to $700 million through private sales to institutional purchasers today.

MARA expects to use up to $50 million of the net proceeds from the sale of the notes to repurchase a portion of its existing convertible notes due 2026 (the ‘existing 2026 convertible notes’) in privately negotiated transactions, with the remainder of the net proceeds to be used to acquire additional Bitcoin and for general corporate purposes, which may include working capital, strategic acquisitions, expansion of existing assets, and repayment of additional debt and other outstanding obligations.

SEC filing

Marathon has already issued convertible notes to increase its Bitcoin treasury and pay off some of its debt. The Bitcoin miner stated that it reserved the right to increase the offering to $1 billion when it unveiled an $850 million offer in November. Marathon Digital’s corporate Bitcoin treasury now stands at $3.3 billion following the most recent acquisition. It is now the second-largest corporate Bitcoin holder.

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