MARA Expands Bitcoin Holdings and Lending Operations
MARA’s Bitcoin Lending Program Gains Traction
MARA, a leading publicly traded Bitcoin mining firm in the United States, has made significant strides in expanding its Bitcoin holdings and lending operations. According to a recent production update, the company has lent 7,377 BTC to third parties, accounting for approximately 16% of its total Bitcoin reserves. These short-term loans are part of MARA’s strategy to generate yield and offset operational expenses in 2024.
Growing Bitcoin Reserves and Income Streams
In 2024, MARA mined 9,457 BTC and purchased 22,065 BTC, with an average purchase price of $87,205. As of December 31, the company’s total Bitcoin reserves stood at 44,893 BTC, valued at around $4.4 billion. MARA has also earned interest income from its cash balance and Bitcoin loans, with $3.9 million received in Q3 2024 and $4.8 million in the first half of the year.
MARA’s Lending Program Attracts Interest
The company’s Bitcoin lending program has garnered significant attention, particularly in the wake of the 2022 bear market meltdown of other Bitcoin lenders like BlockFi and Celsius. MARA’s Director of Investor Relations, Robert Samuels, explained that the lending program is a short-term arrangement with trusted third parties, aimed at generating enough yield to cover operating costs in the long term.
Strategic Expansion of Bitcoin Holdings
In addition to lending, MARA has also increased its Bitcoin holdings through strategic acquisitions. With proceeds from a recent zero-coupon convertible note offering, the company acquired 11,774 BTC, valued at around $1.1 billion. This purchase was made at an average price of $96,000 per Bitcoin.
Conclusion
MARA’s expansion of its Bitcoin holdings and lending operations demonstrates the company’s commitment to growing its reserves and generating income streams. As MARA continues to navigate the cryptocurrency market, its strategic approach to lending and investing in Bitcoin is likely to attract further interest from investors and industry observers alike.
Source: Livebitcoinnews.com
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