In a recent announcement, mining company MARA, formerly known as Marathon Digital, revealed that it had lent out 7,377 Bitcoins (BTC) to third parties in 2024. The information was disclosed on January 3 by the company’s Vice President of Investor Relations, Robert Samuels.
MARA’s Bitcoin Lending Program
According to Samuels, MARA’s Bitcoin lending program focuses on short-term arrangements with well-established third parties. This program generates a modest single-digit yield and has been active throughout 2024. The purpose of the lending program is to generate income that can help offset operating expenses incurred by mining.
The Energy-Intensive Nature of Mining
Mining is an energy-intensive business, characterized by tough fundamentals due to reduced block subsidies every four years during the Bitcoin halving event. The last halving occurred in April 2024, reducing the block reward to 3.125 BTC per block mined. This reduction has a significant impact on mining operations, making it essential for companies like MARA to explore alternative revenue streams.
MARA’s Bitcoin Holdings Breakdown
As of now, MARA holds a total of 44,893 Bitcoins in its treasury. In 2024, the company acquired 22,065 BTC at an average price of $87,205 per coin and mined an additional 9,457 BTC. These transactions have significantly boosted MARA’s Bitcoin holdings.
MARA Becomes Industry Leader with 50 EH/s Milestone
In December 2024, MARA achieved a significant milestone by becoming the first publicly traded mining company to reach 50 exahashes per second (EH/s) in computing power. Currently, the company has an energized hashrate of 53.2 EH/s.
MARA’s Pursuit of Bitcoin as a Treasury Reserve Asset
MARA’s decision to adopt Bitcoin as a treasury reserve asset has been praised by MicroStrategy co-founder Michael Saylor. According to Saylor, MARA is expected to be the next Bitcoin company to join the Nasdaq 100 stock market index.
Important Notes for Investors
It is essential for investors to note that every investment and trading move involves risk. Readers should conduct their own research before making any decisions.
MARA’s Recent Transactions
In November and December 2024, MARA raised $1.9 billion in capital through two senior convertible note offerings. These transactions featured zero-interest coupons with the first offering maturing in 2030 and the second one maturing in 2031. The company used this capital to purchase 15,574 BTC for its corporate treasury.
Conclusion
MARA’s Bitcoin lending program and recent transactions demonstrate the company’s commitment to exploring alternative revenue streams and expanding its Bitcoin holdings. As the industry continues to evolve, it will be interesting to see how MARA adapts to changing market conditions.
Related Stories
- MARA CEO Says Retail Investors Should Buy Bitcoin and "Forget About It"
- MARA Hits 50 EH/s, Grows Bitcoin Reserves
Subscribe to Our Crypto Biz Newsletter
Stay up-to-date with the latest business trends in blockchain and crypto. Get valuable insights to navigate the market and spot financial opportunities.
By subscribing, you agree to our Terms of Service and Privacy Policy.
Subscribe now and get access to exclusive content, including:
- Weekly snapshot of key business trends in blockchain and crypto
- Insights on startup buzz and regulatory shifts
- Financial opportunities and market analysis
Delivered every Thursday, our Crypto Biz newsletter is the perfect resource for anyone looking to stay ahead in the industry.
