Bitcoin Miner Marathon to Raise $250M in Direct Stock Offering
The Las Vegas company has agreed a direct offering of 12.5 million shares of common stock at $20 per share.
Bitcoin Miner Marathon to Raise $250M in Direct Stock Offering
Bitcoin mining company Marathon Patent Group (MARA) shares were down after the Nasdaq-listed firm announced it plans to raise up to $250 million through a direct stock offering.
- The Las Vegas-based company said Tuesday it has entered into a securities purchase agreement with institutional investors for the registered offering of 12.5 million shares of common stock at $20 per share.
- Gross proceeds for this offering are expected to be $250 million, before deduction of agent’s fees and other expenses.
- H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering, which closes on Jan. 15.
- Marathon shares slid on the news, trading down 16.5% at $21.83 in Tuesday’s pre-market session.
- The Las Vegas firm’s shares surged last week to the highest in more than three years, bringing the firm a total market value of $1 billion. That number is now at $1.377 billion.
- The firm has recently invested heavily in new cryptocurrency mining equipment, making orders for 90,000 machines in October and December.
