TLDR
- MARA drops 2.86% despite strong long-term returns
- Company plans $2B stock offering to buy more Bitcoin
- Holds 46,374 BTC, second only to Saylor’s Strategy
- Profit margin hits 82.46% with solid cash flow
- Next earnings expected between May 7 and May 12
Shares of MARA Holdings Inc. fell nearly 3% to $12.58 on April 15. Just recently, the company’s announcement of a major stock offering worth up to $2 billion. The move aims to fuel its aggressive Bitcoin acquisition strategy.
Formerly known as Marathon Digital, MARA filed the offering with the SEC on March 28. The firm partnered with investment giants like Cantor Fitzgerald and Barclays to manage the share sale. Proceeds will go toward corporate operations and buying more Bitcoin.
Bitcoin Reserves Rival Industry Leaders
MARA currently holds 46,374 Bitcoin, worth around $3.9 billion. That puts the company second only to Michael Saylor’s Strategy in BTC reserves. CEO Fred Thiel recently reaffirmed MARA’s “full HODL” approach, saying the firm won’t sell mined Bitcoin to fund operations.
Instead, it plans to expand reserves through direct purchases, underscoring a conviction in long-term crypto value. This strategy has drawn comparisons to Saylor’s playbook at Strategy, where BTC is treated as a treasury asset.
Performance Beats Broader Market
Despite the recent drop, MARA has shown strong performance. Year-to-date, the stock is up 24.99%, crushing the S&P 500’s 8.25% gain. Over five years, the return sits at a staggering 2,695%, though recent volatility has tested investor sentiment.
Its 1-year gain of 16.96% and 3-year return of 40.74% still reflect healthy growth, though those numbers have cooled from previous highs.
Financials Show Solid Margin and Liquidity
MARA posted a profit margin of 82.46%, with net income of $541.25 million and $656.38 million in revenue over the last 12 months. Return on equity sits at 18.81%, while levered free cash flow is a healthy $379.53 million.
The firm also holds nearly $392 million in cash and maintains a manageable debt-to-equity ratio of 54.97%. These metrics point to a financially stable base for executing its crypto-focused roadmap.
Next Earnings To Offer More Clarity
Investors are eyeing MARA’s upcoming earnings report, expected between May 7 and May 12, for more insights into its strategy. With the firm going all in on Bitcoin accumulation, the market wants to see sustainable revenue growth from mining operations.
While bold, the $2 billion stock offering has raised concerns about dilution and short-term pressure on share value. However, MARA’s leadership appears focused on long-term positioning in the crypto mining sector.
The question now is whether this high-risk, high-reward strategy will pay off as Bitcoin’s next bull cycle unfolds. For crypto-aligned investors, MARA remains a stock to watch.
