As a leading player in the Bitcoin mining industry, MARA (formerly Marathon Digital) has been making waves with its innovative approach to generating income through lending out Bitcoin to third parties. According to a recent announcement from the company, MARA lent out 7,377 Bitcoin in 2024, marking a significant milestone in its efforts to offset operating expenses incurred by mining.
Understanding MARA’s Bitcoin Lending Program
MARA’s Vice President of Investor Relations, Robert Samuels, provided further insight into the company’s Bitcoin lending program. According to Samuels, the program focuses on short-term arrangements with well-established third parties and generates a modest single-digit yield. Notably, the program has been active throughout 2024, demonstrating MARA’s commitment to exploring new avenues for income generation.
Why Lending Bitcoin Makes Sense
Mining is an energy-intensive business, and its fundamentals are often subject to fluctuations due to factors like reduced block subsidies every four years during the Bitcoin halving. The last halving occurred in April 2024, which resulted in a reduction of the block reward to 3.125 BTC per block mined. In such a scenario, generating income through lending out Bitcoin becomes an attractive option for companies like MARA.
MARA’s Bitcoin Holdings Breakdown
As of January 2025, MARA’s total Bitcoin holdings stand at 44,893 BTC. This impressive figure is comprised of the following:
- 22,065 Bitcoin acquired in 2024: At an average price of $87,205 per coin, these purchases demonstrate MARA’s commitment to accumulating Bitcoin as a treasury reserve asset.
- 9,457 additional Bitcoin mined: The company’s mining operations have yielded significant returns, contributing to its impressive Bitcoin holdings.
Raising Capital and Acquiring More Bitcoin
In November and December 2024, MARA raised $1.9 billion in capital through two senior convertible note offerings. These offerings featured zero-interest coupons, with the first maturing in 2030 and the second one maturing in 2031. The proceeds from these offerings were used to purchase an additional 15,574 BTC for MARA’s corporate treasury.
Praise from Industry Leaders
MARA’s pursuit of Bitcoin as a treasury reserve asset has drawn praise from industry leaders like MicroStrategy co-founder Michael Saylor. Saylor recently expressed his expectation that MARA will be the next Bitcoin company to join the Nasdaq 100 stock market index, a weighted index of the 100 largest companies by market capitalization listed on the Nasdaq stock exchange.
Conclusion
MARA’s innovative approach to generating income through lending out Bitcoin demonstrates its commitment to exploring new avenues for growth in the rapidly evolving cryptocurrency space. With its impressive Bitcoin holdings and significant mining operations, MARA is well-positioned to continue making waves in the industry. As always, investors should conduct their own research before making any investment decisions, as every move involves risk.
Related Reading
- MARA CEO says retail investors should buy Bitcoin and ‘forget about it’: Get an insider’s perspective on the company’s approach to investing in Bitcoin.
- MARA hits 50 exahashes per second, grows Bitcoin reserves: Learn more about MARA’s impressive milestones in mining and Bitcoin accumulation.
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