$MARA Holdings (MARA.US)$ shares jumped 7% higher in early trading Thursday as Bitcoin hit new all-time highs. MARA is outpacing its Bitcoin-mining peers. Here's a look at what's going on.
Bitcoin hit $98,000 Thursday morning, a new record high. In 2024, Bitcoin has gained more than 130%.
The rally in Bitcoin comes amid continued optimism surrounding a more favorable regulatory environment following President-elect Donald Trump's election win.
Reports from Wednesday suggested the Trump team is considering various candidates for a potential crypto role that would help bridge the gap between the White House, Congress and regulatory bodies.
Several crypto-related stocks are rallying Thursday, but MARA Holdings is outpacing other mining stocks, which may be a result of the "full HODL" strategy the company put in place earlier this year. The strategy involves holding all Bitcoin the company mines and periodically making strategic open market purchases.
MARA Holdings on Thursday announced that it completed an offering of 0.00% convertible senior notes due 2030 for an aggregate amount of $1 billion. Net proceeds from the sales of the notes were approximately $980 million. The company will use $199 million to repurchase some of its notes due 2026. The rest of the proceeds will be used to acquire additional Bitcoin.
The market appears to be applauding MARA Holdings' plan to raise capital to accumulate more Bitcoin, similar to the playbook $MicroStrategy (MSTR.US)$ has followed, which has helped the stock surge more than 650% year-to-date. MARA Holdings said it held a total of 26,747 Bitcoin as of Sept. 30.
