MARA Holdings Pioneers BTC Lending for Yield Generation

MARA Holdings, the largest bitcoin (BTC) miner by market capitalization, is initiating a program to lend out 7,377 BTC, which represents about 16% of its total holdings. This initiative aims to optimize returns on its assets while covering some operational costs.

In a recent production report, the company did not disclose the identity of the borrowers nor any further specifics about the program, tying up this significant portion of its bitcoin holdings. Robert Samuels, the Vice President of Investor Relations, revealed via social media that the yield from this lending endeavor is projected to be below 10%.

"There has been significant interest in MARA's bitcoin lending program," Samuels noted. "It focuses on short-term arrangements with well-established third parties. It generates a modest single-digit yield and has been active throughout 2024. The long-term objective is to generate sufficient yield to offset operating expenses."

MARA reported a bitcoin production of 890 BTC last month, a 2% decrease from November's outputs, while remaining the second-largest production figure since the halving in April. They also successfully mined 249 blocks, making it the second-best monthly block count recorded.

For the year 2024, MARA acquired 22,065 BTC at an average price of $87,205 while mining 9,457 BTC, totaling holdings of 44,893 BTC valued at approximately $4.2 billion. Bitcoin trades just under $100,000 now, and MARA is positioned as the second-largest publicly traded holder of bitcoin after MicroStrategy (MSTR).

Following this announcement, MARA's shares rose by 2.60% in pre-market trading, a rise of 14% since the start of the year.