MARA Holdings Invests $20M for Minority Stake in Two Prime, Increases BTC Allocation to 2,000

Key Points

1. MARA Holdings acquired a minority stake in Two Prime, boosting its Bitcoin allocation from 500 BTC to 2,000 BTC, held in a Separately Managed Account (SMA) for yield generation.

2. MARA's investment reflects its strategy to expand its Bitcoin treasury through stock sales, similar to Michael Saylor’s approach with MicroStrategy.

3. The Bitcoin mining industry faces challenges post-halving, with MARA reporting a net loss of $533 million despite a 30% revenue increase to $214 million in Q1.

4. Skepticism is growing around the sustainability of Bitcoin treasury strategies, with concerns about share dilution and legal actions against firms like MicroStrategy.

5. Two Prime, an SEC-registered institutional investment adviser, manages $1.75 billion and views MARA’s investment as part of a broader shift toward yield-focused strategies.