MARA Expands Bitcoin Lending And Mining Operations In 2024

According to Cointelegraph, mining company MARA, previously known as Marathon Digital, announced on January 3 that it lent out 7,377 Bitcoin (BTC) to third parties in 2024. Robert Samuels, the vice president of investor relations at MARA, provided insights into the company's Bitcoin lending activities, emphasizing that the program focuses on short-term agreements with reputable third parties. This initiative generates a modest single-digit yield and has been operational throughout 2024. The primary aim of the lending program is to generate income to offset the operational costs associated with mining, a process that is energy-intensive and faces challenges due to reduced block subsidies every four years during the Bitcoin halving. The most recent halving occurred in April 2024, reducing the block reward to 3.125 BTC per block mined. In December 2024, MARA became the first publicly traded mining company to achieve a computing power of 50 exahashes per second (EH/s). By January 3, the company announced it had surpassed this milestone, reaching an energized hashrate of 53.2 EH/s. Throughout 2024, MARA acquired 22,065 Bitcoin at an average price of $87,205 per coin and mined an additional 9,457 BTC, bringing its total Bitcoin holdings to 44,893 BTC. To support these acquisitions, MARA raised $1.9 billion through two senior convertible note offerings in November and December 2024. These offerings, which featured zero-interest coupons, are set to mature in 2030 and 2031, respectively. The funds were used to purchase 15,574 BTC for the company's corporate treasury. MARA's strategy of using Bitcoin as a treasury reserve asset has garnered attention, with MicroStrategy co-founder Michael Saylor expressing optimism about the company's future. Saylor recently stated that he anticipates MARA could be the next Bitcoin-focused company to join the Nasdaq 100 stock market index, which includes the 100 largest companies by market capitalization listed on the Nasdaq stock exchange. This article does not provide investment advice or recommendations. Readers are encouraged to conduct their own research before making any investment or trading decisions.