The post MARA Lends 16% of Bitcoin Reserves Amid Rising Interest in BTC Lending appeared on BitcoinEthereumNews.com.

Marathon Digital Holdings (MARA), one of the largest Bitcoin mining firms globally, is pushing the boundaries of operational innovation. The company has revealed that it lent 7,377 BTC representing 16% of its total 44,893 Bitcoin reserves as part of a strategy to generate additional income. With reserves valued at approximately $4.4 billion as of December 31, this bold move reflects MARA’s dual focus on operational growth and innovative revenue generation. Bitcoin Lending Program Gains Traction MARA’s Bitcoin lending program which was operational between the years 2024 also points towards the company’s desire to get the best return on its assets while at the same time managing cost of operations. As explained by Robert Samuels, Director of Investor Relations, the loans refer to ‘short-term arrangements with well-established third parties’ in order to achieve low to mid single-digit returns. Although MARA has not revealed the identities of its borrowers, the move has attracted attention as the industry slowly recovers from the 2022 crypto lending saga. This period was characterized by the crypto industry’s biggest lenders, BlockFi, Genesis, and Celsius, precipitating failures owing to unsecured lending. On the other hand, the conservative strategy of MARA and the fact that it operates with the help of partners increases the emphasis on the prevention of counterparty risks. For instance, the company made $3.9 million in the interest income in Q3 2024 from lending Bitcoin and cash. Adding the $4.8 million received in the first half of the year, Bitcoin lending has clearly become one of the biggest revenue generators for MARA. – Advertisement – Expanding Bitcoin Reserves and Mining Output This is mainly because MARA has had a particularly strong Bitcoin accumulation strategy that supported its lending operation. In 2024 alone, the company mined 9,457 BTC and bought another 22,065 BTC at an average cost…

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Filed under: News - @ January 6, 2025 7:21 pm