MARA Lends 7,377 BTC to Generate Yield

Bitcoin mining giant MARA has announced it lent 7,377 BTC, equivalent to approximately 16% of its total Bitcoin reserves, to generate yield through short-term arrangements with “well-established third parties.”

As of December 31, 2024, MARA’s total Bitcoin reserves stood at 44,893 BTC, valued at approximately $4.4 billion. The company mined 9,457 BTC and acquired 22,065 BTC at an average price of $87,205 during the year.

Yield to Offset Operating Costs

MARA’s Director of Investor Relations, Robert Samuels, described the lending program as a strategic move to offset operational expenses:

“The long-term objective is to generate sufficient yield to offset operating expenses,” Samuels said in a social media post.

Although the company did not disclose the identities of its lending counterparties, Samuels assured stakeholders that these were short-term arrangements with reputable entities.

MARA reported earning a modest single-digit yield from its BTC lending activities.

Interest Income and Industry Context

MARA generated $3.9 million in interest income in Q3 2024, primarily from cash holdings and loaned Bitcoin. During the first half of the year, the company earned an additional $4.8 million in interest income, though earlier filings did not specify contributions from Bitcoin lending.

The significant interest in MARA’s lending program comes in the wake of high-profile failures in the crypto lending space, such as BlockFi, Genesis, Celsius, and Babel, during the 2022 bear market. These collapses highlighted counterparty risks, making MARA’s cautious approach noteworthy.

Hashrate Milestone

In addition to its lending activities, MARA reported surpassing the 50 EH/s threshold, ending 2024 with 53 EH/s of energized hashrate. Its realized hashrate remained stable at approximately 47 EH/s, consistent with its performance in November.

MARA’s strategic Bitcoin lending program demonstrates its commitment to leveraging existing reserves to offset operational costs while maintaining transparency and stability in a challenging market. With its robust hashrate performance and disciplined financial strategies, MARA remains a key player in the Bitcoin mining industry.