MARA Utilizes 16% Bitcoin Reserves to Boost Revenue

Marathon Digital Holdings (MARA), one of America’s leading publicly traded Bitcoin mining companies, recently announced that it has loaned out around 16% of its total Bitcoin reserves, which amounts to 7,377 BTC, to external parties for the purpose of earning returns. This disclosure was made in a production update published on Friday, explaining that these loans are temporary agreements with reputable third parties.

According to Robert Samuels, the Director of Investor Relations at MARA, the objective is to produce enough income to cover all running costs. This program provides a relatively low, yet respectable, return in the single-digit range and has been active since the year 2024.

Although MARA didn’t reveal the names of the loan recipients, the lending program has garnered a lot of attention, particularly considering the bankruptcy of prominent Bitcoin lenders such as BlockFi and Celsius during 2022.

On December 31st, MARA had a total of 44,893 Bitcoins in its reserves, which was roughly equivalent to $4.4 billion. During the entirety of 2024, the company mined 9,457 Bitcoins and bought an extra 22,065 Bitcoins at an average cost of about $87,205 per Bitcoin.

In the third quarter of 2024, MARA brought in approximately $3.9 million through interest earnings, largely stemming from cash and Bitcoin loans. This sum combines with the $4.8 million earned during the first half of the year, with Bitcoin lending playing a significant role in these profits.

Regarding daily operations, MARA managed to reach a hashrate of 53 Exahash per second (EH/s) by the end of the year. In actual use, it generated a hashrate of 47 EH/s, demonstrating consistent and robust performance.

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2025-01-05 19:48