Crypto mining company Marathon Digital has unveiled plans to raise as much as $750 million through a hybrid equity offering.
In a recent filing submitted to the US Securities and Exchange Commission, the company said it plans to use the funds generated from this sale to invest in state-of-the-art mining equipment and expand its operational capacity.
Marathon Digital, traded on the Nasdaq exchange under the ticker symbol “MARA,” has been making waves in the market, benefiting from the recent surge in Bitcoin prices.
The company, as of September 30, held an impressive 13,726 Bitcoins and was generating over 1,000 Bitcoins per month.
It is worth noting that shares of Marathon Digital have experienced a notable 23% surge this week, mirroring the 12% rise of Bitcoin within a similar timeframe.
Despite the recent gains, Marathon Digital’s stock is still trading at a 50% discount from its peak of $19 earlier in July 2023.
However, market expectations remain high as the company is scheduled to release its Q3 2023 financial results next month, in November 2023.
During the previous quarter, Marathon Digital witnessed an impressive threefold increase in revenue, surpassing $80 million.
Moreover, the company managed to narrow its losses and is expected to continue this positive trend.
Bitcoin Miners Take Advantage of Price Surge
Many Bitcoin miners have taken advantage of the recent surge in prices by selling their holdings.
The flagship cryptocurrency, which has been consistently surging since the start of the year, has gained more than 80% year-to-date (YTD).
At the time of writing, BTC is trading at around $34,100, almost flat over the past day.
However, the leading cryptocurrency is up by more than 20% over the past week and by more than 30% over the past month, according to data by CoinMarketCap.
Meanwhile, miners are looking for innovative ways to reduce costs and operate sustainably amid recent financial setbacks and growing concerns over the environmental impact of cryptocurrency mining.
Bitcoin mining is an energy-intensive process, making power the biggest expense for mining operations.
In order to address this issue, mining companies are seeking low-cost power sources to remain profitable and competitive, with renewable energy becoming the preferred choice for its cost-effectiveness and environmental benefits.
Read the full article here
