Oh boy those who don't learn from the past are doomed to repeat it, it's only been 4 years and here we go again. Bitcoin mining firm MARA has lent 7,377 BTC approximately 16% of its total reserves to third parties to generate yield.
Queue the fireworks, this cycle is going to be fun!
https://theminermag.com/news/2025-01-05/mara-lend-bitcoin-btc/
"Burn it with fire... or in this case, lend it to anyone who'll take it. Looks like MARA's already mastered the art of 'Bitcoin lending' - the 4-year cycle version. When did they say 'FOMO is eternal'? #BitcoinLending #MARA"
As if 45% CAGR isn’t enough 🤦‍♂️
Lol it's never enough, remember its only because banks are greedy that we can't all bag 8%, the wise words of Alex lend me your corns Machinsky. Risking it all to pick up pennies is wild
I don’t understand who borrows Bitcoin with interest denominated in Bitcoin… I thought this on a small scale at HodlHodl…
When you can have your debt denominated in Dollars, why do this in Bitcoin?
Any ideas of who would borrow on these terms?
If we look at the daisy chain of the last round it all really ended up with 3 arrows capital and Alameda who were using it for leverage traders, I guess you could borrow them to exchanges like a ByBit or Binance or a new startup that wants to offer leverage, or to do a short trade, but honestly I'm not really sure who the end users of this bitcoin would be, I guess we find out when it all goes pear shaped
Yeah I don’t doubt there is some sort of play here. Maybe it is strictly for short positions…. I’m not a finance guru enough to figure it out yet.
Seen this movie before… FFS!! Why would you risk it for fucking FIAT?
You would think after celsius, blockfi and FTX they would have learned and the fact that the trend of raising capital for Bitcoin on your balance sheet would be enough, but ey greed is powerful
Good at setting up mining rigs - brain dead at managing the hardest asset on earth.. some people are still in this world for FIAT and will always be!
I guess these blow ups are good for those of us who just want one last chance at cheap sats so I can't be mad at them, only pick up the discount when the debt gets called
