#Bitcoin Mining Companies Profit from Lending#

Bitcoin mining company MARA Holdings recently announced it would use 16% of its Bitcoin reserves (approximately 7,377 coins, worth nearly $730 million) for short-term third-party loans to generate "modest single-digit returns." This move has sparked investor concerns about risk and reward. MARA stated the plan aims to cover operating costs and has been active throughout 2024, focusing on short-term arrangements with established third parties. The company also announced its hashrate surpassed its December target of 50 EH/s, with total holdings increasing to 44,893 Bitcoin. While MARA claims the lending program has generated returns, the identity of the borrowers has not been disclosed, raising concerns about industry risks. Some investors question whether the move is too risky, worrying that borrowers may default on loans, leading to losses for MARA. On the other hand, some investors believe this is an effective way for MARA to boost returns and cover operating costs, confident that the company has implemented necessary risk control measures. Currently, the market's reaction to MARA's move is unclear, and investors need to closely monitor its subsequent developments.