MARA Lends Out 7,377 BTC in 2024 Amid Mining Expansion
Bitcoin mining giant MARA, formerly known as Marathon Digital, has disclosed lending out 7,377 Bitcoin (BTC) to third parties throughout 2024. The move comes as part of the company’s strategy to offset operating expenses in the energy-intensive mining industry.
Lending Program Details
Purpose: Generate income to cover mining operational costs.
Structure: Short-term arrangements with established third parties offering a modest single-digit yield.
Total BTC Lent: 7,377 BTC (valued at approximately $687 million at the 2024 average price of $93,354 per BTC).
Robert Samuels, MARA’s Vice President of Investor Relations, highlighted the program’s role in maintaining financial stability amid reduced block rewards following the April 2024 Bitcoin halving, which decreased the mining reward to 3.125 BTC per block.
MARA’s Milestones in 2024
- Hashrate Achievement:
- MARA became the first publicly traded mining company to reach 50 exahashes per second (EH/s) in computing power, surpassing 53.2 EH/s by year-end.
- Bitcoin Accumulation:
- Acquired 22,065 BTC at an average price of $87,205 per coin.
- Mined an additional 9,457 BTC during 2024.
- Total Bitcoin holdings reached 44,893 BTC, valued at approximately $4.2 billion at current market rates.
- Capital Raising Efforts:
- Raised $1.9 billion through two senior convertible note offerings in November and December 2024.
- Both offerings featured zero-interest coupons, maturing in 2030 and 2031 respectively.
- Funds were used to purchase 15,574 BTC for its corporate treasury.
Industry Recognition and Outlook
MARA’s aggressive accumulation of Bitcoin as a treasury reserve asset has garnered praise from MicroStrategy co-founder Michael Saylor, who envisions the company as the next potential Bitcoin-focused addition to the Nasdaq 100 index.
Saylor commented:
“MARA’s strategic focus and commitment to Bitcoin make it a strong contender for inclusion in the Nasdaq 100.”
Challenges and Opportunities
MARA faces the same hurdles as other Bitcoin miners, including rising energy costs and declining block subsidies due to halvings. However, its innovative strategies, such as the BTC lending program and treasury expansion, position it as a leader in the sector.
Conclusion: MARA’s growth and strategic initiatives highlight its commitment to maintaining its dominance in Bitcoin mining and treasury management. As it continues to expand its operations and adapt to market dynamics, MARA is poised to remain a key player in the cryptocurrency ecosystem.
