MARA says 16% of its BTC reserves has been loaned to third parties for 'modest' yield

2025-01-06 09:35:00 Primitive Reading

From theblock by Zack Abrams

Quick Take

Bitcoin miner MARA recently said it has deployed 16% of its BTC holdings, 7,377 BTC worth nearly $730 million, in short-term third-party loans to generate a “modest single-digit yield.”
MARA also announced it had surpassed its hash rate target of 50 EH/s in December and grew its overall holdings to 44,893 BTC, including the loans.

Bitcoin BTC +0.21%

miner MARA Holdings released its December 2024 production update, detailing the results of its latest mining activity and disclosing the existence of short-term third-party loans intended to generate a modest yield for the company.

In its production update, MARA said that as of Dec. 31, 7,377 BTC, or 16.4% of its BTC reserves, was currently deployed in short-term third-party loans in an effort to generate additional yield for shareholders.

MARA's vice president of investor relations, Robert Samuels, later gave additional details about the lending program in a post on X. According to Samuels, the lending program, which has been active throughout 2024, "focuses on short-term arrangements with well-established third parties" and generates a "modest single-digit yield," though the identity of the borrowers was not disclosed.

In 2024, the company bought 22,065 BTC at an average price of $87,205 and mined 9,457 BTC more, its reserves now totaling 44,893 BTC, according to the announcement—a sum worth over $4.4 billion at current prices.

In the production update, MARA also said it surpassed its energized hash rate target of 50 EH/s in 2024, reaching a peak of 53.2 EH/s, though a "slight decrease in luck" led to a 2% decrease in overall BTC production compared to November.

Despite a dip in October, Bitcoin's monthly hash rate reached an all-time high in December, according to The Block's data.

"As a miner that mines and buys bitcoin, the hybrid approach provides us significant flexibility to acquire bitcoin at attractive prices," CEO and chairman Fred Thiel said. "We believe this dual approach strengthens our position and enhances our ability to deliver long-term shareholder value."

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