Marathon Digital Holdings, one of the largest Bitcoin mining companies listed in the United States, has announced the launch of a new “at-the-market” (ATM) stock offering of 2 billion dollars. The capital raised will be largely allocated to the direct purchase of bitcoin on the market, thus strengthening the company’s digital reserves. The decision represents a strategic shift for the company, increasingly oriented to follow the example of Strategy (formerly MicroStrategy), a global leader in the corporate accumulation of BTC.
The operation will be managed by major financial partners including Barclays Capital, BMO Capital Markets, BTIG, and Cantor Fitzgerald. This is the second similar operation by Marathon, following a previous ATM program of 1.5 billion dollars.
Accumulation of Bitcoin (BTC): Marathon’s post-halving strategy
Marathon has filed the official document with the U.S. Securities and Exchange Commission (SEC), confirming the intention to issue new shares flexibly based on market conditions. Through this fundraising, the company intends to:
- Finance the direct purchase of bitcoin
- Strengthen the liquidity position
- Cover operating expenses and growth investments
The strategy reflects a model similar to that successfully adopted by Strategy, which has accumulated over 500,000 BTC using both operating profits and offerings in the capital markets. Marathon, in pursuing a “HODL” approach, aims to build a durable digital asset that strengthens its balance sheet in the long term.
Comparison of BTC among listed companies (June 2024)
| Company | BTC held | Estimated value in $* | Primary strategy |
|——————|————–|———————–|——————————-|
| Strategy | 506,000+ | ~34 billion | Direct purchases via equity and debt |
| Marathon Digital | 46.376 | ~3.1 billion | Mining + acquisti da mercato aperto |
*Estimated values based on BTC at 67,000 USD
A new balance after the halving
The halving event of April 2024 reduced the rewards for mining from 6.25 to 3.125 BTC per block, compressing the margins of mining companies. In this context, Marathon adopted a hybrid strategy, combining traditional mining with direct procurement of bitcoin from financial markets.
This choice allows the company to:
- Diversify the methods of procuring BTC
- Compensate for the lower profitability of mining post-halving
- Adapt to the growing competitiveness of the sector
According to Fred Thiel, CEO of Marathon (source: press release published on the company’s official website), “the increase of our Bitcoin reserve through strategic purchases strengthens our position in the sector and optimizes our hybrid business model.”
Institutional trust in the future of Bitcoin
The involvement of large financial institutions in the operation, including Barclays and Cantor Fitzgerald, adds a decisive element of credibility to the business strategy. The fact that Marathon can attract capital to finance the accumulation of bitcoin shows that, for a growing part of the financial markets, BTC represents a legitimate asset class and strategic in the long term.
Furthermore, the continuous tokenization of the economy – reflected by the growing adoption of ETFs, stablecoins, and derivative instruments on criptovalute – makes similar initiatives much more plausible and potentially frequent among companies with a solid financial structure.
Effects on the market and retail investors
The move by Marathon will likely have a tangible impact on the markets:
- It can contribute to increased bullish pressure on Bitcoin prices in the short and medium term.
- Provides a precedent for other tech or mining companies that intend to employ corporate liquidity in digital assets.
- It could accelerate the migration of investment in Bitcoin from retail to institutional investors.
This dynamic could also influence the demand for financial products related to cryptocurrencies, such as bitcoin spot ETFs, structured funds, and portfolios for high-net-worth investors.
Towards a hybrid model in corporate mining
The approach of Marathon marks the evolution of the crypto sector from a paradigm based exclusively on mining to a more composite and sophisticated one. The companies that will combine:
- Operational capacity in mining,
- Access to capital markets,
- Investment strategies on the secondary,
they will have a significant competitive advantage.
This new model is emerging as the new normal for crypto-native and fintech businesses, especially after systemic events like halvings, which put traditional business models under pressure.
Conclusions
The 2 billion dollar offer launched by Marathon Digital Holdings represents a decisive step towards the transformation of mining companies into full-fledged financial players in the crypto market. The company not only strengthens its position in the sector, but also issues an implicit challenge to Strategy, marking the beginning of a new phase in the race for the accumulation of bitcoin among listed companies.
In a rapidly evolving sector, this type of integrated strategy could set the operational standard for those who want to survive – and thrive – in the next bull-bear crypto-financial cycle.
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