Marathon Digital Lends 16% of Bitcoin Reserves for Yield

• Marathon Digital lends 7,377 BTC to third parties, representing 16% of its total reserves, to generate modest yield.
• Marathon diversifies into AI and computing to overcome mining challenges and support long-term growth initiatives.

Marathon Digital Holdings, a well-known Bitcoin mining company, has stated that it will lend 7,377 BTC to third parties in 2024, accounting for around 16% of its total Bitcoin reserves, according to The Miner Mag. Through these short-term contracts, the corporation hopes to create yield—a tactic consistent with its more general objective of offsetting running costs.

Marathon’s overall Bitcoin reserves as of December 31 were 44,893 BTC, worth roughly $4.4 billion at current market rates. This amount comprises 9, 457 BTC mined annually as well as 22, 065 BTC acquired at an average price of $87,205 per coin.

Marathon’s Trusted Partnerships Drive Bitcoin Lending Success 

Marathon withheld the names of the third parties engaged, but Robert Samuels, the Director of Investor Relations, stressed the dependability of these agreements by characterizing the counterparties as “well-established.” Having actively participated in Bitcoin lending all year long, the company has a meager single-digit yield.

There has been significant interest in @MARAHoldings BTC lending program, so here’s a bit more detail:
– It focuses on short-term arrangements with well-established third parties.
– Generates a modest single-digit yield.
– It has been active throughout 2024.
– The long-term…

— Robert Samuels (@RobSamuelsIR) January 3, 2025

Particularly in view of the fall of big Bitcoin lenders such as BlockFi, Celsius, Genesis, and Babel during the 2022 weak market, interest in Marathon’s Bitcoin lending scheme has surged greatly. These incidents revealed serious counterparty hazards, which increased criticism of lending policies in the crypto sector.

Marathon’s approach has shown effectiveness despite these worries; the company notes $3.9 million in interest income in Q3 2024. This number mostly results from earnings from loaned Bitcoin and cash on the balance sheet.

Earlier filings show Marathon also created $4.8 million in interest income during the first half of the year, although at the time income from Bitcoin loans was not specifically stated.

Marathon’s attempts to improve its financial situation by means of strategic borrowing line up with a larger drive toward operational diversification. Funded by zero-interest convertible bonds, last December, as reported by CNF, the corporation increased its Bitcoin holdings by 11,774 BTC.

Marathon has also been making investments in computational technologies and artificial intelligence to solve mining issues and propel long-term expansion.

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