In a notable development, MARA Holdings, the leading publicly traded Bitcoin miner on Wall Street, has obtained a $200 million line of credit.
This credit line, supported by a portion of the company’s digital asset holdings, highlights the growing trend of using cryptocurrencies for corporate financing.
Sale of MARA Shares
Adding to this development, MARA’s director, Douglas K. Mellinger, recently liquidated 1,000 shares of the company’s common stock for a total amount of $16,770, following a prearranged trading plan.
This recent action followed MARA Holdings’ previous decision to invest $249 million in Bitcoin, reinforcing its position in the digital currency market.
In August, the company successfully executed a $300 million offering of convertible senior notes, with a significant portion of the funds designated for further Bitcoin purchases.
Currently, MARA stock stands as the second-largest publicly traded holder of Bitcoin, closely trailing MicroStrategy.
Connection Between MARA and Bitcoin
As per Bitbo data, MARA owns around 0.12% of the total Bitcoin supply, which amounts to approximately 26,000 tokens valued at an estimated $1.8 billion.
This substantial cryptocurrency portfolio not only demonstrates MARA’s strategic dedication to digital assets but also mirrors the increasing trend of institutional involvement in Bitcoin.
On October 17th, MARA shares recorded a 6.86% surge in their stock price, according to data from Google Finance.
Despite this positive momentum, the stock has witnessed a year-to-date decline of 21.15% and came close to hitting yearly lows in September.
This performance aligns with Bitcoin’s current trading price of $67,097.71, which experienced a marginal drop of 0.99% over the past 24 hours, as per CoinMarketCap data.
Potential Upside for MARA Holdings
However, amidst these challenging circumstances, a recent analysis from Macquarie suggests a potential upturn for MARA Holdings, with the firm initiating coverage with an “Outperform” rating.
The analysis underscores the company’s strategic pivot towards artificial intelligence (AI) and High-Performance Computing (HPC), indicating that these advancements could lead to a substantial 50% uptick in its valuation.
With a price target of $22 per share, marking the highest target since July, Macquarie emphasizes MARA’s significant standing in the market.
MARA continues to reign as the largest publicly traded Bitcoin producer, commanding a market capitalization of nearly $5 billion, outpacing its nearest rival, Core Scientific, valued at $3.3 billion.