In 2024, cryptocurrency mining firm MARA, formerly known as Marathon Digital, lent 7,377 Bitcoin (BTC) to third parties as part of its strategy to offset operational expenses. Robert Samuels, MARA’s Vice President of Investor Relations, explained that the lending program focuses on short-term arrangements with established entities, generating modest single-digit yields to support the company’s mining operations.
The Bitcoin mining industry faces increasing challenges due to the energy-intensive nature of operations and periodic reductions in block rewards, such as the halving event in April 2024, which decreased rewards to 3.125 BTC per block. To mitigate these challenges, MARA has diversified its revenue streams through Bitcoin lending and achieved significant milestones, including becoming the first publicly traded mining company to reach 50 exahashes per second (EH/s) in computing power as of December 2024.
Throughout 2024, MARA expanded its Bitcoin holdings by acquiring 22,065 BTC at an average price of $87,205 per coin and mining an additional 9,457 BTC, bringing its total reserves to 44,893 BTC. The company financed these acquisitions by raising $1.9 billion through two senior convertible note offerings in November and December, both featuring zero-interest coupons and maturing in 2030 and 2031, respectively.
MARA’s strategic accumulation of Bitcoin as a treasury reserve asset has garnered attention within the industry. MicroStrategy co-founder Michael Saylor recently suggested that MARA could be the next Bitcoin-focused company to join the Nasdaq 100, reflecting its growing prominence in the cryptocurrency sector.
