MARA Holdings, a leading Bitcoin mining company, has taken a minority stake in Two Prime, an institutional investment adviser managing $1.75 billion in assets.
Key Takeaways:
MARA Holdings acquired a minority stake in Two Prime, boosting its Bitcoin allocation to 2,000 BTC.
The additional Bitcoin will be held in a Separately Managed Account to generate yield.
MARA and other miners face profitability challenges post-halving, prompting pivot toward AI data centers.
The acquisition includes a $20 million equity investment and significantly boosts MARA’s Bitcoin allocation managed by Two Prime, increasing it from 500 BTC to 2,000 BTC, according to a recent press release.
The additional Bitcoin will be held in a Separately Managed Account (SMA) and used to generate yield for MARA.
MARA Expands Bitcoin Treasury via Stock Sales
MARA, known for one of the largest Bitcoin treasuries globally, initially built through its self-mining efforts, has been expanding its Bitcoin holdings through stock sales, a strategy reminiscent of Michael Saylor’s approach with Strategy.
Salman Khan, MARA’s CFO, explained that the move reflects the company’s goal to activate its Bitcoin balance, aiming to use BTC as more than just a passive asset linked to price gains.
Two Prime, registered with the US Securities and Exchange Commission (SEC), specializes in helping institutional and professional investors gain exposure to Bitcoin.
“As bitcoin becomes an integral part of corporate and sovereign balance sheets, institutions are reevaluating how to deploy it strategically,” said Alexander Blume, CEO of Two Prime.
“MARA’s investment signals a broader shift toward active, yield-focused bitcoin strategies that meet institutional standards. This is a long-term alignment around vision, risk management, and innovation.”
MARA, like many miners, is navigating a tough post-halving market.
The recent Bitcoin halving cut block rewards in half, squeezing mining revenues while energy and equipment costs continue to rise.
Despite a 30% revenue increase to $214 million in Q1, MARA reported a net loss of $533 million, highlighting the strain on mining profitability.
To adapt, several mining firms, including Core Scientific and HIVE Digital, have shifted toward AI data center hosting and repurposing infrastructure for high-performance computing.
Core Scientific’s future in Bitcoin mining remains uncertain following its $9 billion acquisition by CoreWeave, which plans to potentially repurpose or divest crypto operations.
Doubts Grow Over Long-Term Viability of Bitcoin Treasury Strategy
Skepticism around the sustainability of the Bitcoin treasury trend is growing.
Last week, Glassnode lead analyst James Check raised concerns over the longevity of the corporate Bitcoin treasury strategy, arguing the easy gains might already be gone for new entrants as the market matures.
The warning echoes recent comments from Matthew Sigel, head of digital asset research at VanEck, who has voiced concerns over the Bitcoin treasury strategies adopted by some publicly traded firms.
Sigel singled out the use of at-the-market (ATM) share issuance programs, arguing that these can become dilutive if a company’s stock price nears its Bitcoin net asset value (NAV).
Meanwhile, New York law firm Pomerantz LLP has filed a class action lawsuit against Michael Saylor’s Strategy, accusing the Bitcoin-focused firm of misleading investors about the profitability and risks of its crypto investment strategy.
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