MARA sold 23,093 BTC in the first half of the year: a survival strategy or a forced measure?
Analyzing the operational activity of one of the largest public miners, I discovered revealing dynamics: over the period from January to June, the company MARA sold 23,093 BTC for approximately $1.6 billion. These funds were directed toward covering operational costs, stimulating growth, and optimizing liquidity. The average sale price was $70,631 per coin, reflecting the current market context.
As of June 30, MARA's balance sheet held 35,577 BTC, valued at $2.08 billion. Of this volume, 9,270 BTC were involved in an asset management strategy: 4,742 BTC were lent to third parties, and 4,528 BTC were used as collateral. This indicates the company's desire to extract additional returns from its reserves, but such operations also carry increased risks.
Financial results: pressure on margins
MARA's revenue for the half-year fell to $349.5 million, compared with $452.4 million a year earlier. Bitcoin mining revenue dropped from $436.5 million to $342.2 million, while production volume rose slightly—from 4,644 BTC to 4,669 BTC. The key factor behind the decline was a 23% drop in the average price of mined bitcoin, to $73,707. Clearly, the growth in hash rate and network difficulty is offsetting the positive effect of increased production.
The net loss for six months reached $1.87 billion, versus a profit of $274.8 million for the same period last year. The main pressure came from a $964.2 million loss on the revaluation of digital assets at fair value and a $397.4 million loss on bitcoin lent out or pledged as collateral. This underscores the volatility inherent in the crypto industry and the vulnerability of business models dependent on market fluctuations.
After the end of the second quarter, MARA raised an additional $600 million through two credit lines from Coinbase and Two Prime, secured by bitcoin. The company provided 18,750 BTC as initial collateral. Part of these funds is planned to be used to finance the acquisition of the Long Ridge gas power plant. Recall that the company's loss for the second quarter amounted to $611 million.
My comment: MARA's actions demonstrate the classic dilemma of miners in a bearish trend: the need to maintain liquidity by selling mined assets. However, the active use of collateral mechanisms and credit lines increases financial leverage, which, in the event of a further price decline, could lead to cascading liquidations. Investors should closely monitor the debt burden of such companies.