MARA focuses on growth with expanding Bitcoin holdings

The Bitcoin mining company MARA has expanded its Bitcoin reserves to an impressive 40,435 BTC, equivalent to a market value of around 3.9 billion USD, after strategically acquiring 11,774 BTC for 1.1 billion USD. These investments were financed through the issuance of zero-percent convertible notes and made at an average price of 96,000 USD per Bitcoin. The company's Bitcoin return year-to-date is 47.6%, reflecting the growth of its holdings relative to diluted shares. In July, MARA introduced the 'HODL' policy—a strategic approach aimed at retaining all self-mined Bitcoins to further strengthen reserves through targeted investments. CEO Fred Thiel emphasizes the role of Bitcoin as a reserve asset and encourages adoption by businesses and governments. This strategy aligns with MicroStrategy, which holds a remarkable 423,650 BTC valued at over 40 billion USD. A significant milestone was recently achieved by MARA with a hash rate of 50 exahashes per second (EH/s), a notable increase from 36.9 EH/s in the third quarter. This makes the company the first public Bitcoin miner to reach such capacity. However, the stock price fell 4.4% following the announcement, closing at 22.81 USD despite an 18% increase over the past six months. MARA is active in capital raising through convertible senior note offerings, including a recent offering of 850 million USD, up from an initial 700 million USD. These funds were used to repay existing notes, purchase Bitcoin, and reserve 160 million USD for future acquisitions during price dips. In the previous quarter, MARA acquired 6,484 BTC for 618 million USD in cash at an average price of 95,352 USD per Bitcoin. The Bitcoin price showed volatility, reaching a peak of 104,000 USD on December 5 before stabilizing at 96,300 USD in current trading. MARA's current holdings constitute nearly 0.2% of the total Bitcoin supply, strengthening its position as the second-largest public holder of the cryptocurrency. Despite these advancements, the company reported a net loss of 124.8 million USD for the third quarter, a significant increase from a loss of 390,000 USD in the same period of the previous year. Although MARA's stock performance has declined by 0.55% this year, the company remains focused on expansion; Thiel hinted at potential expansion of mining capacities with existing infrastructure. MARA's strategy of balancing operational growth with investments in Bitcoin demonstrates its commitment to strengthening its position in the cryptocurrency market.