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Bitcoin Miner Files Form S-3 to SEC; Plans To Raise $750 Million

Published 27/10/2023, 21:36
© Reuters.  Bitcoin Miner Files Form S-3 to SEC; Plans To Raise $750 Million

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  • Bitcoin Miner Marathon Digital (NASDAQ:MARA) filed a Form S-3 to the US SEC, announcing plans to raise $750 million.
  • This week, Marathon Digital shares have risen by 23%, alongside Bitcoin’s 12% increase.
  • Bitcoin miners are experiencing increased selling pressure due to record-high hash rates.

Last week, Bitcoin surged beyond $34,000, marking a 106% increase for the year, following a challenging crypto winter in 2022. Simultaneously, Bitcoin miner Marathon Digital, trading as “MARA” on the Nasdaq stock market, experienced an increase in its stock price. According to a Form S-3 filing to the U.S. Securities and Exchange Commission, Marathon Digital is planning to raise $750 million through a hybrid equity offering.

At the end of September, the firm possessed 13,726 Bitcoins, while generating more than 1,000 Bitcoins monthly. With the new funds, Marathon Digital will expand its operational capacity and invest in acquiring new mining equipment.

Marathon Digital shares have risen by 23% this week, mirroring Bitcoin’s 12% increase over a similar timeframe. Meanwhile, year-to-date, MARA’s stock has surged an impressive 164%, reaching its current price of $9, but it remains 50% less than the $19 stock price observed earlier in July 2023.

On the other hand, the company will unveil its Q3 2023 financial results next month, in November 2023. In Q2 2023, Marathon Digital posted a substantial increase in revenue, exceeding $80 million. Furthermore, the company managed to reduce its losses during the last quarter and aims to continue this trend in the upcoming period.

Bitcoin is currently facing a significant challenge as miners are experiencing increased selling pressure. Factors contributing to the pressure include record-high hash rates, elevated mining difficulty, and rising operational costs, which affect their profitability. According to analyst Miles Deutscher, the next halving event will trigger miners to sell BTC holdings to boost their capital.

This trend is already becoming apparent, with miners sending unprecedented amounts of BTC to exchanges, intensifying the selling pressure in the market. Additionally, data from Glassnode, a blockchain data and intelligence provider, reveals that miner revenue sent to exchanges has hit an all-time high of 315%.

The post Bitcoin Miner Files Form S-3 to SEC; Plans To Raise $750 Million appeared first on Coin Edition.

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