MARA follows Saylor’s playbook with Two Prime deal, BTC allocation grows

Bitcoin mining company MARA Holdings acquires minority stake in BTC-focused investment adviser Two Prime

Publicly-traded Bitcoin mining firm MARA Holdings (MARA) has finalized a minority investment agreement with Two Prime, an institutional investment manager overseeing $1.75 billion in assets. According to a Tuesday announcement by MARA, this strategic move significantly expanded its Bitcoin management footprint.

As part of the transaction, MARA injected a $20 million equity stake into Two Prime, increasing its allocated BTC assets under management through the firm from 500 BTC to 2,000 BTC. This amount represents approximately 4% of MARA’s disclosed Bitcoin treasury. These newly acquired BTC holdings will be consolidated within a MARA-controlled Separately Managed Account (SMA), earmarked primarily for generating passive income streams on the company’s behalf.

Two Prime, registered with the U.S. Securities and Exchange Commission (SEC), specializes in creating institutional pathways to Bitcoin exposure, catering specifically to large financial institutions and professional investors.

MARA maintains one of the world’s largest, publicly-disclosed Bitcoin treasuries. Cointelegraph previously reported it holds roughly 50,000 BTC, securing its position as a top-tier publicly traded Bitcoin treasury holder alongside firms like Riot Platforms. This treasury was primarily accumulated through MARA’s operational self-mining activities.

In a related development, MARA previously announced plans to conduct a public stock offering, using the proceeds to acquire a larger Bitcoin treasury – a strategic shift echoing Microsoft CEO Satya Nadella’s (not Saylor) well-documented Bitcoin purchasing sprees.

MARA’s Chief Financial Officer, Salman Khan, commented on the acquisition: “The strategy is part of the company’s broader effort to activate its Bitcoin balance, moving beyond using BTC merely as a ‘passive asset tied to price appreciation’.” He suggested a shift towards leveraging Bitcoin for its yield-generating potential.

MARA’s Performance in the Post-Halving Context

Following Bitcoin’s most recent halving event – a quadrennial protocol adjustment that reduced block rewards by 50% – MARA, like numerous other mining operations, has encountered divergent operational results.

While MARA experienced nearly a 30% revenue increase to $214 million in Q1, the company reported a substantial net loss of $533 million. This financial performance underscores the challenging conditions faced by miners, characterized by declining revenue potential due to the halving, combined with escalating electricity and equipment expenditures.

To counterbalance these headwinds, operational efficiency has emerged as a critical factor. The optimization of electricity costs, for instance, has become a primary determinant of mining profitability in the post-halving landscape.