Bitcoin mining company MARA, formerly known as Marathon Digital, lent out 7,377 Bitcoin (BTC) in 2024 to generate additional income.
In a recent announcement, the company said the lending was intended to offset the operating costs associated with its energy-intensive mining operations.
According to Robert Samuels, MARA’s vice president of investor relations, the Bitcoin lending program focuses on short-term arrangements with reputable third parties.
MARA’s Bitcoin Lending Initiative Offers Single-Digit Yield
Samuels emphasized that the initiative, which offers a modest single-digit yield, has been active throughout 2024.
However, he did not provide specific details regarding the financial returns or the counterparties involved.
The lending program is part of MARA’s broader strategy to navigate the challenging mining landscape.
With Bitcoin halving in April 2024 reducing block rewards to 3.125 BTC, miners face increased pressure to optimize operations and maintain profitability.
MARA has positioned itself as an industry leader, becoming the first publicly traded mining company to surpass 50 exahashes per second (EH/s) in computing power.
By the year’s end, the company reported an energized hashrate of 53.2 EH/s.
In addition to its lending activities, MARA significantly expanded its Bitcoin holdings.
The company acquired 22,065 BTC at an average price of $87,205 per coin and mined 9,457 BTC in 2024, bringing its total reserves to 44,893 BTC.
To fund these acquisitions, MARA raised $1.9 billion through two zero-interest senior convertible note offerings, maturing in 2030 and 2031.
MARA’s aggressive Bitcoin accumulation has garnered attention from prominent figures, including MicroStrategy co-founder Michael Saylor.
Saylor has expressed optimism about MARA potentially joining the Nasdaq 100 index, further cementing its position as a major player in the Bitcoin industry.
US Dominates Bitcoin Mining
At the close of 2024, the United States solidified its position as a leader in Bitcoin mining, accounting for over 40% of the global hashrate — the total computing power securing the Bitcoin network.
U.S.-based mining pools Foundry USA and MARA Pool played a significant role, collectively mining more than 38.5% of all Bitcoin blocks.
Foundry USA increased its hashrate from 157 exahashes per second (EH/s) at the beginning of the year to approximately 280 EH/s by December.
Despite these advancements, China-based mining pools remain influential, controlling 55% of the global hashrate as of September 2024, according to CryptoQuant founder Ki Young Ju.
The dominance persists despite a 2021 ban on cryptocurrency mining in China, with miners circumventing restrictions through virtual private networks (VPNs) and peer-to-peer apps that bypass the national firewall.
Last month, Bitcoin mining hardware manufacturer Bitmain announced the expansion of its production operations to the United States, citing a strategic goal of improving supply chain efficiency.
As reported, Jack Dorsey’s Block has also announced plans to ramp up investments in its Bitcoin mining initiative and self-custody Bitcoin wallet.
At the time, the company said it would reallocate resources from its canceled “Web5” project, TBD, and cut investments in the music-streaming service, Tidal, to support this move.
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