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Bitcoin Miner Marathon Digital to Raise $750 Million Amid MARA Stock Rally

source-logo  coingape.com 27 October 2023 10:11, UTC

The 100% Bitcoin price rally this year in 2023 has also pumped the revenues of Bitcoin miners after a brutal crypto winter of 2022. Bitcoin Mining Giant Marathon Digital is now gearing up for a major fundraise as per its recent filing with the U.S. Securities and Exchange Commission (SEC).

Marathon Digital to Raise $750 Million

Marathon Digital has announced plans to raise up to $750 million through a hybrid equity offering, as per the filing. As of September 30, the company held 13,726 Bitcoins and was generating over 1,000 Bitcoins monthly.

It has submitted a FORM S-3 filing to the U.S. Securities and Exchange Commission. The proceeds from this offering will be allocated towards investments in new mining equipment and expanding its operational capacity.

Marathon Digital is publicly traded on the Nasdaq stock exchange, using the ticker symbol “MARA”. Amid the strong price rally in Bitcoin this week, the stock of Marathon Digital also saw a strong upside.

Marathon Digital (NASDAQ: MARA) shares have surged by 23% this week. This gain is in line with Bitcoin’s (BTC) 12% increase over a similar timeframe, although it’s important to note that BTC trades continuously while stocks follow regular trading hours. Nevertheless, this price movement in the underlying asset aligns with expectations, as basic economic principles suggest such a correlation.

Since the beginning of the year, the MARA stock has gained a staggering 164% as of the current price of $9. However, the stock is still trading at a 50% discount from the $19 stock price witnessed earlier this year in July 2023.

Q3 Revenue Numbers

Expectations from Marathon Digital are high as it is set to release its Q3 2023 numbers next month in November 2023. During the last quarter of Q2 2023, the Bitcoin miner reported a threefold surge in its revenue shooting past $80 million. Additionally, the company also narrowed losses during the last quarter and further expected to do it ahead.

With the rise in the bitcoin price this year, Bitcoin miners have been selling their holdings.

coingape.com