Bitcoin Mining Company Disburses 7,377 BTC in a Loan Scheme

Bittime - Marathon Digital Holdings (MARA), one of the leading Bitcoin mining companies, recently announced that they have utilized a portion of their Bitcoin (BTC) reserves for additional profit.

By allocating 16% of its total BTC reserves, which is equivalent to 7,377 BTC or around Rp11.9 trillion, MARA made short-term loans to third parties. This move aims to generate a moderate yield in the form of a single-digit yield, although the identity of the borrower was not disclosed.

In its December 2024 production report, MARA also revealed that it had surpassed the hash rate target of 50 EH/s set for this year. With the peak reaching 53.2 EH/s, the company managed to strengthen their position in the Bitcoin mining market.

However, despite the increase in hash rate, their BTC production recorded a 2% decrease compared to November, which was due to a slightly reduced luck factor.

Also read: Investors are Eyeing Bitcoin for Long-Term Investment, Here's Why!

Lending Strategy to Boost Liquidity

By disbursing 7,377 BTC in the form of loans, MARA demonstrated an innovative strategy to increase liquidity and maximize the potential of their digital assets. This loan program is designed to give the company flexibility in managing their BTC reserves while staying focused on long-term growth.

While the expected returns from this loan are moderate, this move allows MARA to continue investing in mining infrastructure and new technology.

Robert Samuels, MARA's Vice President of Investor Relations, explained that this loan program focuses on short-term arrangements with established third parties.

With this approach, MARA can maintain financial stability while remaining committed to increasing shareholder value.

Increased Hash Rate and BTC Production

MARA has managed to increase their hash rate, reaching 53.2 EH/s, demonstrating their ability to mine Bitcoin efficiently.

Although their BTC production decreased by 2% compared to the previous month, the higher hash rate shows that the company remains on track to increase their mining capacity.

This increase in hash rate also reflects MARA's investment in more advanced and efficient mining technology. By continuing to innovate, MARA seeks to maintain their position as one of the leaders in the Bitcoin mining industry.

Also read: Bitcoin vs Gold: Bitcoin Performs Better than Gold!

Hybrid Approach to Bitcoin Mining

MARA's CEO, Fred Thiel, asserts that the hybrid approach-which combines mining and BTC buying-gives them a competitive advantage. With this strategy, MARA not only relies on Bitcoin mining proceeds, but also capitalizes on market opportunities to buy BTC at favorable prices.

This approach allows MARA to adapt to market fluctuations and maximize potential profits.

With total BTC reserves currently reaching 44,893 BTC, the total value of MARA's reserves is estimated to be more than Rp71 trillion. With a well-planned and innovative strategy, MARA is committed to continuing to be a major player in the global Bitcoin mining industry.

FAQ

What is Marathon Digital Holdings (MARA)?

Marathon Digital Holdings (MARA) is one of the leading Bitcoin mining companies focused on operating crypto mining infrastructure. The company is committed to increasing mining capacity and maximizing shareholder value through innovative strategies.

Why did MARA disburse 7,377 BTC in the form of a loan?

MARA disbursed 7,377 BTC in loans to increase liquidity and maximize the potential of their digital assets. This move aims to generate moderate returns in the form of single-digit yields, while still focusing on long-term growth.

What is the hybrid approach to Bitcoin mining?

The hybrid approach to Bitcoin mining adopted by MARA combines digital asset mining with BTC purchases. This strategy allows the company to adapt to market fluctuations and maximize potential profits from both sources.

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References

voi.id, Bitcoin Mining Company Lends 7,377 BTC To Other Parties, accessed on January 7, 2025.

Author: AWW