MARA Loans 16% of BTC Reserves to Generate Yield, Eyes Strong 2025 Bitcoin Surge

• MARA loans 16% of its Bitcoin reserves to trusted partners, earning modest yields while managing risk from past crypto lender crashes.
• In 2024, MARA mined 9,457 BTC and acquired 22,065 BTC, increasing its reserves to 44,893 BTC worth $4.4 billion by year-end.
• CEO Fred Thiel expects Bitcoin to dip to $90K before hitting $200K by 2025, fueled by growing institutional interest and ETFs.

MARA, a Bitcoin mining firm, has lent out 7,377 BTC to third parties to generate yield. This loaned amount is about 16% of its total Bitcoin reserves. MARA disclosed in a production report on Friday that it mined 9,457 Bitcoin and purchased 22,065 Bitcoin in 2024 at an average price of $87,205. The corporation had 44,893 BTC in reserves by December 31, which was then valued at almost $4.4 billion.

MARA’s Strategic Lending and Yield Generation

The firm has been actively lending Bitcoin to third parties throughout 2024. Robert Samuels, MARA’s Director of Investor Relations, confirmed that these loans are short-term and involve well-established partners. The loans generate a modest single-digit yield, which contributes to MARA’s long-term goal of offsetting operating expenses. Despite the concerns arising from the collapse of Bitcoin lenders such as BlockFi, Genesis, and Celsius during the 2022 bear market, MARA continues to engage in lending with careful risk management.

The quarterly earnings of MARA, which generated $3.9 million in interest income in Q3 2024, demonstrate this strategy. An additional $4.8 million in interest income was generated during the first half of the year. This change was mostly caused by interest on Bitcoin loans and money held on its balance sheet.

Bitcoin Price Prediction: A Hopeful Prospect for 2025

MARA CEO Fred Thiel predicts Bitcoin to reach $200,000 by the end of 2025. He ascribes this prediction to a finite supply of Bitcoin, growing institutional interest, and calculated investments.  Thiel believes that the rise in Bitcoin’s price was partly caused by the US presidential election. However, he thinks the price may first fall to $90,000 before eventually reaching $200,000.

Thiel points out that Bitcoin ETFs are going ahead of gold ETFs in their early stages of growth in terms of asset acquisition. Additionally, sovereign wealth funds and pension funds are progressively adding tiny amounts of Bitcoin to their holdings. These elements imply that institutional demand will contribute to future price increases in Bitcoin.