In the year 2024, MARA will lend out Bitcoins to others in order to earn interest and increase their own holdings. This income will be used to cover the operational costs of the company.
American Bitcoin mining corporation MARA, one of the biggest publicly traded in the U.S., has extended 7,377 Bitcoins as loans to external entities. This represents approximately 16% of its total Bitcoin holdings. The company clarifies that these loans are temporary agreements with recognized third parties, aimed at generating income to cover operational costs.
In a recent update, MARA disclosed that it extracted 9,457 Bitcoins and bought an additional 22,065 Bitcoins in the year 2024, with an average cost of $87,205 per Bitcoin. As a result, MARA’s total Bitcoin reserves stood at approximately 44,893 BTC by December 31, which equated to a value of around $4.4 billion.
In 2024, MARA did not reveal who it had loaned Bitcoin to temporarily. These loans were facilitated by reputable, established third parties as mentioned by Robert Samuels, the company’s Director of Investor Relations. Throughout this year, MARA has been actively lending Bitcoin and earns a modest return in the single-digit percentage range from these transactions.
MARA Bitcoin Lending Attracts Interest Amid Market Weakness
Samuel recently outlined the company’s lending program on various social media platforms, describing it as a temporary agreement with reliable external parties. The ultimate goal is to produce enough revenue to sustain operational expenses over the long term. MARA’s Bitcoin lending program has garnered significant attention, possibly due to the collapse of other Bitcoin lenders like BlockFi and Celsius during the 2022 bear market. It was emphasized that these types of investments carry risks for depositors.
Aside from its lending activities, MARA has also expanded its Bitcoin portfolio. By purchasing 11,774 Bitcoins worth approximately $1.1 billion USD with the funds raised from a recent zero coupon convertible note offering, BCGP made this acquisition at an average price of around $96,000 per Bitcoin.
In Q3 of 2024, MARA banked $3.9 million as interest earnings, primarily from its cash reserves and Bitcoin loans. Previous reports didn’t disclose income derived from loaned Bitcoins, but during the first half of 2024, it accrued approximately $4.8 million in interest from these loans.
Essentially, MARA is increasing its Bitcoin reserves while investigating methods for lending Bitcoins to others, indicating a two-pronged approach: accumulating more assets and generating income to meet its operating expenses.
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2025-01-07 08:24