Marathon Patent Group Inc (NASDAQ: MARA) rose sharply, after the company filed for sale of 1.85 million shares of common stock by selling stockholders.
The micro-cap IP licensing company has seen its value more than quadruple on its plans to buy Global Bit Ventures Inc and was the second most-traded U.S. stock for much of Monday ahead of a call to lay out the details of the deal post-market.
In the event, Marathon said that it would issue about 127 million shares to pay for the deal, leaving existing shareholders with only 19% of the company. That drove its shares down sharply on Tuesday.
Marathon, which has three employees, declined to say if it would issue the shares at a fixed price or talk about other financial details, leaving investors a bit perplexed.
Marathon Patent CEO Doug Croxall said the value of the deal, which is to closed early next year, would be made “transparent” in a regulatory filing in the next few weeks.
Croxall also declined to comment on the stock’s surge in the past few sessions or why it came so late given the deal was announced on Nov. 2.
But he did say GBV owns 1,000 servers to mine ethereum, of which 300 were running and producing revenue, with 400 to generate revenue imminently.
It plans to add 1,300 servers to mine bitcoin, the most popular cryptocurrency which has surged tenfold this year.
The shares sprouted wings and flew 70 cents, or 18.2%, to $4.55, approaching noon ET Wednesday
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