MARA Holdings expands share authorization

MARA Holdings, Inc. (NASDAQ:MARA), a $5 billion market cap company specializing in finance services, announced significant corporate changes, including an increase in authorized common stock and the withdrawal of a preferred stock series. The changes were revealed in a recent SEC filing dated February 19, 2025. According to InvestingPro data, MARA maintains a healthy current ratio of 4.0, indicating strong short-term financial stability.

The company, headquartered in Fort Lauderdale, Florida, filed a Certificate of Amendment with the Nevada Secretary of State to raise the number of authorized common stock from 500 million to 800 million shares. This amendment was approved by shareholders during a special meeting and took effect immediately upon filing. InvestingPro analysis shows the company has been quickly burning through cash, which may explain the need for additional share authorization. Investors seeking deeper insights into MARA’s financial health can access comprehensive Pro Research Reports, available exclusively to InvestingPro subscribers.

Following the special meeting, MARA Holdings redeemed its Series X Preferred Stock, paying a total of $1,300 to the sole holder of this stock series. Subsequently, on February 21, 2025, the company filed a Certificate of Withdrawal, which became effective upon filing. This action eliminated the designation of the 13 million shares of Series X Preferred Stock and returned the preferred stock to an authorized but unissued status without any series designation.

The special meeting on February 19, 2025, was convened to approve the amendment to the Articles of Incorporation. At the time of the meeting, there were 339,382,454 shares of common stock and 13,000,000 shares of Series X Preferred Stock outstanding. The proposal to amend the Articles of Incorporation required a majority vote from the outstanding shares of the company’s capital stock. It was approved with over 11 billion votes in favor, against approximately 1.85 billion votes, with a small number of abstentions and no broker non-votes.

As the approval of the Charter Amendment rendered further discussion unnecessary, the second proposal to adjourn the meeting for additional proxy solicitation was not presented.

This move to increase the number of authorized shares allows MARA Holdings more flexibility in future corporate endeavors, such as financing activities, stock-based compensation, and potential strategic transactions. The information is based on the company’s latest 8-K filing with the SEC.

In other recent news, MARA Holdings, Inc. has completed the acquisition of a wind farm in Hansford County, Texas, which aligns with its strategy to utilize renewable energy for bitcoin mining. This acquisition is part of MARA’s shift towards an asset-heavy business model, aiming to reduce production costs and achieve near net-zero operating expenses. Additionally, MARA reported a decline in bitcoin production for January 2025, with a 12% decrease in blocks won compared to the previous month, due to network difficulty changes and intermittent curtailment. Despite this, the company’s energized hashrate remained steady, and efforts to enhance efficiency through immersion cooling are ongoing.

In other developments, MARA postponed its Special Meeting of Stockholders to February 19, 2025, to allow more time for stockholder participation. The company also announced an increase in its hash rate and BTC holdings for December 2024, with a 15% improvement in hash rate to 53.2 EH/s, although BTC production slightly decreased by 2%. Furthermore, MARA’s year-end BTC holdings were valued at approximately $4.2 billion, with a portion loaned to third parties for additional returns. Meanwhile, the broader crypto market experienced a downturn, impacting MARA and other crypto-exposed stocks, as Bitcoin’s value fell significantly amidst Federal Reserve interest rate signals.

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