MARA Holdings (MARA), the largest publicly traded Bitcoin miner, is lending out 7,377 BTC (BTC-USD), roughly 16% of its total holdings, to generate a modest return, according to a recent production report. The company, holding a massive 44,893 BTC, valued at $4.2 billion, has engaged in these short-term lending arrangements as part of its strategy to cover operating costs and earn a modest single-digit yield.
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MARA Seeks Yield in an Ever-Challenging Market
Robert Samuels, MARA’s VP of investor relations, shared on X that the lending program has been “active throughout 2024,” focusing on trusted third-party borrowers. While the yield from these loans is under 10%, it’s a way for the company to create passive income, helping offset operating expenses.
Bitcoin Production Declines but Hash Rate Surges
MARA mined 890 BTC in December, a 2% decrease from November, but still its second-highest monthly output since April’s halving event. Fred Thiel, the company’s CEO, noted that MARA’s hash rate grew an impressive 168% in 2024, far outpacing Bitcoin’s network growth of 49%. Despite the drop in production, the company’s continued expansion of its mining capacity has shown positive results.
Is MARA a Good Stock to Buy?
Overall, Wall Street has a Moderate Buy consensus rating on MARA Holdings stock based on four Buys and eight Holds. The average MARA price target of $27.80 implies about 41.2% upside potential from current levels. Shares of MARA Holdings have declined by more than 20% over the past year.
