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500 Bitcoin Partnership from Crypto Mining Company MARA Holding! Here are the Details
The largest publicly traded cryptocurrency mining company in the US, MARA Holdings ( formerly known as Marathon Digital ), has taken another strategic step to evaluate corporate Bitcoin assets.
MARA Holdings Expands Partnership with Two Prime to Increase Yield on Bitcoin Holdings
The company announced that it will expand its existing partnership with SEC-registered investment advisor Two Prime by allocating 500 BTC to the yield strategies managed by Two Prime in the initial phase.
Currently, Two Prime was providing Bitcoin-backed loans to MARA. The new step aims to transform this collaboration into a broader capital management model.
"MARA has one of the largest institutional Bitcoin treasuries in the world. It is setting a standard for how institutional investors can responsibly unlock the value of Bitcoin," said Two Prime CEO Alexander Blume.
"This partnership is not only focused on returns; we are also building a model based on transparency, risk awareness, and capital efficiency."
MARA Holdings is the second company among publicly traded companies with the most Bitcoin after Strategy, holding 48.137 BTC. The company's market value is approximately 5.7 billion dollars.
MARA, which generated $214 million in revenue in the first quarter of 2024, nevertheless announced a net loss of $533 million. In March, the company announced plans to sell up to $2 billion in shares in an effort to increase its Bitcoin reserves.
"It's a smart and balanced strategy to evaluate our Bitcoin assets more effectively," said Paul Giordano, Vice President of MARA Digital Asset Management, who continued: "By allocating this share to Two Prime's strategies, we continue to prioritize flexibility and security while increasing our return targets."
Two Prime operates by developing Bitcoin derivative strategies tailored for institutional investors with access to $2.5 billion in capital.
On the other hand, while MARA stocks have lost approximately 8% since the beginning of the year, the bitcoin price has increased by 11.5% recently, surpassing $110,000 and reaching a new all-time high.