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Wall Street Bitcoin mining giant MARA Holdings (NASDAQ: MARA) issued a stark warning about the United States’ need to secure dominance in Bitcoin holdings and mining operations. The company framed this as a critical national security imperative in the wake of growing global competition.
MARA Urges US Government
to Secure Bitcoin Dominance
The Fort
Lauderdale-based company, formerly known as Marathon Digital
Holdings, highlighted that the US currently holds approximately 200,000
Bitcoin, maintaining only a slim lead over China’s 190,000 BTC holdings.
This gap
appears particularly concerning when compared to the nation’s commanding lead
in gold reserves, where the US maintains 8,133 metric tonnes versus China’s
2,264 tonnes.
— MARA (@MARAHoldings) November 26, 2024
The largest
Bitcoin miner by
market capitalization on Wall Street, warns that the United States must
maintain its dominance in the cryptocurrency market, both in terms of reserves
and hash rate. The company emphasizes that digital asset sector could become
more significant than gold reserves or USD in the future.
“The dollar
is no longer directly backed by gold, yet holding substantial gold reserves
remains a matter of national security,” MARA commented. “These reserves provide
the US with the ability to transact should foreign nations lose confidence in
the dollar.”
MARA’s
proposal outlines several critical areas requiring immediate attention:
- Mining
Infrastructure: The
company emphasizes the urgent need to develop domestic ASIC chip production,
reducing dependence on Chinese manufacturers who currently control up to 90% of
the mining hardware market. - Hashrate
Control:
“Failing to secure a sufficient share of blockspace and hashrate leaves
the US vulnerable to external pressures,” warns MARA CEO Fred Thiel,
pointing to growing mining influence from competing nations.
The timing
of MARA’s advisory coincides with renewed interest in Bitcoin as a strategic
asset, particularly following Donald Trump’s recent election victory. Senator
Cynthia Lummis’s Bitcoin Act proposes an ambitious government acquisition of
one million bitcoin over five years.
MARA’s own
strategic positioning also reflects these concerns. The
company recently completed a $1 billion convertible senior notes offering,
with proceeds primarily targeted at Bitcoin acquisition and existing note
repurchases.
China Emerges as a Renewed
Threat
Last week,
MARA CEO Thiel also commented on the matter, highlighting that China is
shifting its stance on cryptocurrencies, with Chinese cities preparing to
resume Bitcoin mining. This will significantly impact global hash rate and
increase the importance of Wall Street-listed Bitcoin miners and producers
originating from the Middle Kingdom.
I suggest those of you in power who are not aware of, or understand, the need for the US to control block space should revisit a few of my presentations on the topic. China has enough excess renewable energy to power lots of hash rate. Add to that that Russia now has started…
— Fred Thiel (@fgthiel) November 22, 2024
“I
suggest those of you in power who are not aware of, or understand, the need for
the US to control block space should revisit a few of my presentations on the
topic,” Thiel commented. “China has enough excess renewable energy to
power lots of hash rate.”
The MARA
CEO also mentions that Russia is catching up to the US in terms of mining
output, creating grounds for a new digital cold war over dominance in a space
that may become far more significant than the US dollar in coming decades.
Geopolitical
tensions have led to U.S. Customs reportedly
detaining shipments of mining equipment and chips from Bitmain, a Chinese
manufacturer of cryptocurrency mining hardware.
MARA is
also facing its own challenges. In Q3 2024, the
company reported a net loss of $124.8 million, despite a 34.5% increase in
revenue to $131.6 million compared to the same period last year. The loss was
primarily due to a $40 million rise in operational expenses, which outpaced
revenue growth.
This article was written by Damian Chmiel at www.financemagnates.com.
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