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Bitcoin mining firm MARA Holdings has finalized a minority purchase of Two Prime, an institutional investment advisor managing $1.75 billion in assets, in a transaction that considerably boosts the volume of BTC Two Prime oversees on MARA’s behalf.
The minority investment encompassed a $20 million equity contribution to Two Prime, with MARA raising its Bitcoin (BTC) allocation with the organization to 2,000 BTC from 500 BTC, MARA declared on Tuesday. The Bitcoin will be maintained in a Separately Managed Account and utilized to generate yield for MARA.
Two Prime is an investment advisor registered with the US Securities and Exchange Commission (SEC). The firm assists institutions and professional investors in attaining exposure to Bitcoin.
MARA boasts one of the globe’s largest Bitcoin treasuries, initially established through its self-mining activities. As reported by Cointelegraph, the firm subsequently revealed plans to sell shares to procure more Bitcoin, a strategy echoing Michael Saylor’s Approach.
MARA’s chief financial officer, Salman Khan, stated that the strategy aligns with the company’s broader initiative to activate its Bitcoin reserves, which entails utilizing BTC as more than merely a “passive asset linked to price appreciation.”
Related: 10 public companies that quietly turned their balance sheets into Bitcoin treasuries
MARA encounters mixed outcomes in a post-halving environment
Similar to numerous mining companies, MARA has faced varied results following Bitcoin’s latest quadrennial halving, which halved block rewards. The diminished revenue potential, combined with escalating energy and equipment expenditures, exerted pressure on miners’ profitability.
This resulted in a $533 million net loss for MARA in Q1, despite a nearly 30% uptick in revenue to $214 million.
As Cointelegraph noted, optimizing electricity costs has emerged as a crucial profitability element in the post-halving landscape.
In light of these difficulties, several miners, including Core Scientific and HIVE Digital, have started transitioning their business models toward AI data center hosting and repurposing infrastructure for high-performance computing (HPC) tasks.
Nonetheless, Core Scientific’s future in Bitcoin mining remains uncertain after it was acquired by CoreWeave in a $9 billion all-stock transaction. CoreWeave indicated it may “repurpose” Core Scientific’s assets for HPC or completely divest its crypto activities.
Related: Despite record high, S&P 500 is down in Bitcoin terms
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