Marathon Digital, a cryptocurrency mining firm, has announced its intentions to secure up to $750 million via a combined equity offering.
As detailed in a recent document submitted to the US Securities and Exchange Commission, Marathon Digital aims to allocate the raised funds toward the acquisition of cutting-edge mining hardware and to boost its operational scale.
Publicly traded on the Nasdaq with the ticker “MARA,” Marathon Digital has captured significant market attention, especially in the backdrop of the recent uptick in Bitcoin’s value.
As of the end of September, the firm boasted a holding of 13,726 Bitcoins and reported a monthly production of over 1,000 Bitcoins.
Interestingly, Marathon Digital’s stock has witnessed a prominent 23% growth this week, paralleling Bitcoin’s 12% ascent during the same period.
Even with its recent upswing, Marathon Digital’s stock is currently valued at half its earlier peak of $19 from July 2023.
Yet, optimism surrounds the company, especially as it gears up to disclose its Q3 2023 financials in the coming November 2023.
In the last reported quarter, the firm showcased a commendable tripling of its revenue, exceeding the $80 million mark.
Additionally, Marathon Digital successfully reduced its deficits and is anticipated to maintain this upward trajectory.
Bitcoin Miners Take Advantage of Price Surge
Amidst the ongoing Bitcoin price rally, several miners have opted to liquidate their holdings.
The premier digital currency, which has witnessed a steady climb since the year’s onset, has seen an appreciation of over 80% year-to-date (YTD).
Currently, BTC’s price hovers around $34,100, showing little change from the previous day.
Yet, on a broader scale, Bitcoin has marked a growth of over 20% in the last week and an impressive 30% surge in the past month, as per CoinMarketCap’s data.
In light of recent financial challenges and increasing scrutiny over the environmental implications of crypto mining, miners are exploring novel methods to cut expenses and adopt more sustainable practices.
The process of Bitcoin mining demands substantial energy consumption, rendering electricity the most significant outlay for these operations.
To counteract this, mining enterprises are on the hunt for affordable energy solutions to maintain profitability and edge in the market. Renewable energy, with its dual advantages of being cost-efficient and eco-friendly, is emerging as the favored option for many in the industry.