MARA Holdings (NASDAQ: MARA), the largest publicly traded bitcoin miner on Wall Street, has announced the acquisition of a $200 million credit line. This credit facility is secured by part of the companyâs cryptocurrency holdings, highlighting the growing trend of crypto-backed financing in the corporate world.
MARA Uses Bitcoin Reserves for a $200 Million Loan
In a statement released by MARA, the crypto miner revealed that it used a portion of its substantial bitcoin reserves to secure the $200 million credit line. The company has not disclosed specific details regarding the use of the funds, merely stating that the funds could be used for âstrategic opportunities and other general corporate purposes.â
Formerly known as Marathon Digital Holdings, MARA is the largest bitcoin miner on Wall Street with a market capitalization of nearly $5 billion, significantly ahead of its closest competitor, Core Scientific, valued at $3.3 billion.
Bitcoin Purchases and Growing Market Presence
This move follows MARAâs decision in August to purchase $249 million worth of bitcoin. Additionally, in August, the company successfully completed a $300 million convertible senior note offering, much of which was allocated for purchasing BTC.
Currently, MARA is the second-largest publicly traded holder of bitcoin, right behind MicroStrategy. According to data from Bitbo, MARA holds approximately 26,000 BTC, representing 0.12% of the total bitcoin supply, with an estimated value of nearly $1.8 billion.
MARA Stock: Potential for a 50% Upside, According to Macquarie
Despite bitcoinâs price surge of 60% in 2024, currently hovering around $68,000, MARAâs stock hasnât brought much joy to investors, having fallen by 28% year-on-year and nearly hitting yearly lows in September. However, a recent report from the financial group Macquarie suggests this could soon change. The firm initiated coverage of MARAâs stock with an "Outperform" rating, noting that the companyâs shift toward artificial intelligence (AI) and high-performance computing (HPC) could lead to a 50% increase in stock value. Macquarieâs current price target for MARA shares is $22, the highest since July.
Bitcoin Miners Turning to AI and HPC
MARA leads the trend among bitcoin miners seeking new revenue streams from their massive data centers as they face growing competition and challenges in the mining sector, with margins tightening.
While MARA has not made any official statements regarding a shift toward AI, recent leadership changes suggest a potential move in this direction. The company has strengthened its board of directors by appointing individuals with significant expertise in AI and data center operations.
Future Potential for AI and Bitcoin Mining
Industry analysts believe that bitcoin mining companies could unlock significant value in the coming years by focusing on AI and HPC. Matthew Sigel, head of digital asset research at VanEck, highlights the synergy between the energy needs of AI companies and bitcoin miners' access to energy resources.
"AI companies need power, and bitcoin miners have it. As the market values the growing AI/HPC data center sector, access to energyâespecially in the near futureâcommands a premium," Sigel said.
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