MARA sold 23,000 BTC over six months: a survival strategy or a bet on liquidity?
The largest public bitcoin miner, MARA (formerly Marathon Digital), has published its financial results for the first half of the year, and the numbers raise questions about the true state of the industry. Over six months, the company sold 23,093 BTC for approximately $1.6 billion. The average sale price was $70,631 per coin—notably below current market levels, indicating a forced nature to the sell-off.
The proceeds, as stated in the report, were used to fund operational activities, support growth programs, and manage liquidity. However, what is more concerning is this: despite an increase in mining volumes (from 4,644 to 4,669 BTC), the company's revenue declined from $452.4 million to $349.5 million. The reason is simple—the average price of mined bitcoin fell by 23%, to $73,707.
Balance Sheet and Hidden Risks
As of June 30, MARA's balance sheet held 35,577 BTC valued at $2.08 billion. But not all of these assets are freely available: 4,742 BTC have been lent to third parties, and another 4,528 BTC are used as collateral. Thus, nearly 26% of the company's reserves are already involved in operations with counterparties, creating additional credit risks.
The financial result looks bleak: the net loss for the half-year reached $1.87 billion, compared to a profit of $274.8 million a year earlier. Key factors included a $964.2 million loss from the fair value remeasurement of digital assets and another $397.4 million in losses on bitcoins provided as loans and collateral.
Debt Burden and Expansion
After the reporting period ended, MARA raised an additional $600 million through two bitcoin-backed credit lines from Coinbase and Two Prime. The initial collateral consisted of 18,750 BTC. In my estimation, part of these funds will go toward financing the purchase of the Long Ridge gas power plant—a $1.5 billion deal that will transform the company into an energy operator.
The situation demonstrates a fundamental shift in miners' strategy: amid volatility and declining profitability, they are forced to balance between preserving reserves and the need to raise capital. However, the active use of bitcoin as a collateral instrument is a double-edged sword: in the event of a sharp price drop, the company risks facing margin calls, which could trigger a cascade of liquidations.
My verdict: MARA is transforming from a classic miner into a hybrid energy-financial structure. This could be a forward-looking move, but the current figures show that the cost of this transition has turned out higher than expected.