In a year marked by significant milestones and strategic advancements, the Bitcoin network and its key participants have demonstrated resilience and adaptability. Bitcoin transaction volumes more than doubled in 2024, reversing a two-year decline, while Marathon Digital, now known as MARA, broke industry records with its hashrate and innovative Bitcoin lending program. Bitcoin Network Transactions Surge Past $19 Trillion in 2024, Reversing Two-Year Decline The Bitcoin network witnessed a dramatic resurgence in 2024, settling over $19 trillion in transactions, more than double the $8.7 trillion recorded in 2023. This rebound marks a significant reversal of the downward trend that followed the $47 trillion peak during the 2021 bull market. Pierre Rochard, vice president of research at Riot Platforms, highlighted the network's achievement, stating, “The Bitcoin network finalized more than $19 trillion worth of BTC transactions in 2024, decisively proving that Bitcoin is both a store of value and a medium of exchange.” The growth in Bitcoin transaction volume can be attributed to pivotal events in 2024, including: Introduction of a Bitcoin ETF in the US: The launch of a Bitcoin exchange-traded fund (ETF) provided institutional investors with easier access to the cryptocurrency, boosting adoption and liquidity. The April 2024 Halving Event: Bitcoin’s block reward halving, a key event in its economic model, reduced the issuance rate of new BTC, sparking increased interest and price momentum. A New All-Time High Price: Bitcoin reached an unprecedented price of $108,000 in 2024, reflecting heightened demand and market enthusiasm. These milestones cemented Bitcoin’s position as a leading financial asset, furthering its reputation as a reliable store of value and medium of exchange. Pierre Rochard’s analysis sheds light on Bitcoin's transactional trajectory over the past six years. After peaking during the 2021 bull run, transaction volumes dipped sharply in 2022 and 2023 due to bearish market conditions. However, 2024 marked a strong recovery, signaling renewed confidence and activity on the network. Bitcoin’s Hashrate Reaches New Heights In parallel with rising transaction volumes, Bitcoin’s hashrate — a measure of the computational power securing the network — also reached historic levels. On Jan. 3, 2024, the hashrate hit an all-time high of 1,000 exahashes per second (EH/s). Although it later stabilized at around 775 EH/s, this milestone sheds light on the network’s growing resilience and security. US-based mining pools played a significant role in the network's expansion, with over 40% of the global hashrate attributed to miners operating within the United States. Prominent US-based pools, including Foundry USA and MARA Pool, mined over 38.5% of all Bitcoin blocks in 2024. However, China-based mining pools still maintained majority control, reflecting a competitive and geographically diverse mining ecosystem. Accurately assessing the geographic distribution of Bitcoin's hashrate remains complex due to the pseudonymous nature of mining. Factors such as virtual private networks (VPNs) and the global distribution of individual miners contribute to the difficulty of pinpointing precise locations. Mining pools may be headquartered in specific regions, but their contributors often span the globe. This decentralized structure is part of Bitcoin’s core ethos of resilience and neutrality, enabling the network to operate independently of centralized authorities. Bitcoin’s resurgence in transaction volumes and the historic rise in its hashrate reflect growing adoption and confidence in the cryptocurrency's value proposition. As 2025 begins, the network’s trajectory suggests sustained growth, with increasing institutional interest, regulatory developments, and technological advancements likely to shape its evolution. Key areas to watch include: Further Adoption of Bitcoin ETFs: As Bitcoin ETFs gain traction, their impact on liquidity and institutional investment will be closely monitored. Global Hashrate Dynamics: The distribution of mining power across countries and its implications for Bitcoin’s decentralization will remain a critical topic. Price Movements and Adoption Trends: With Bitcoin trading near $98,926, analysts will keep an eye on macroeconomic factors and technological innovations driving price action. Bitcoin’s performance in 2024 has set a strong foundation for the coming years, reaffirming its status as a transformative financial innovation. With robust infrastructure, growing institutional adoption, and a vibrant global community, Bitcoin continues to redefine the future of finance. MARA Advances Bitcoin Mining Industry with Lending Program and Record Achievements Marathon Digital , rebranded as MARA , has cemented its position as a leader in the Bitcoin mining industry through strategic initiatives and record-breaking milestones. On Jan. 3, the company disclosed key figures from its operations in 2024, highlighting its innovative Bitcoin lending program, surging hashrate, and growing Bitcoin reserves. MARA announced that it lent out 7,377 Bitcoin in 2024, generating modest single-digit yields through short-term arrangements with established third parties. Robert Samuels, vice president of investor relations at MARA, explained the program's objectives, stating that the lending initiative is designed to offset operating expenses incurred by mining operations. Mining remains a capital-intensive industry, with profitability challenges exacerbated by periodic block reward reductions during Bitcoin halving events. The most recent halving in April 2024 reduced the block reward to 3.125 BTC per block, compelling miners to explore alternative revenue streams. Samuels emphasized MARA's cautious approach to lending, prioritizing partnerships with reputable entities to minimize risk. The strategy is part of a broader trend among mining companies seeking innovative ways to sustain operations amidst increasing competition and rising energy costs. In December 2024, MARA became the first publicly traded Bitcoin mining company to achieve 50 exahashes per second (EH/s) of computing power. This milestone shows MARA’s commitment to scaling its operations and securing its position in the global mining landscape. As of Jan. 3, 2025, MARA reported an energized hashrate of 53.2 EH/s, further solidifying its leadership in the sector. The company's significant investment in infrastructure and technology has not only enhanced its operational efficiency but also contributed to the security and resilience of the Bitcoin network. Expanding Bitcoin Reserves MARA’s aggressive accumulation of Bitcoin in 2024 reflects a strategic vision of leveraging the cryptocurrency as a treasury reserve asset. The company acquired 22,065 BTC at an average price of $87,205 per coin, supplementing the 9,457 BTC it mined during the year. These efforts have brought MARA’s total Bitcoin holdings to an impressive 44,893 BTC. To fund its Bitcoin purchases, MARA raised $1.9 billion through two senior convertible note offerings in November and December 2024. These zero-interest notes, maturing in 2030 and 2031, indicate that the company has the ability to secure favorable financing terms while expanding its crypto reserves. MARA’s Bitcoin strategy has drawn accolades from industry leaders, including MicroStrategy co-founder Michael Saylor. Saylor lauded MARA’s approach, predicting that the company may soon join the Nasdaq 100, a prestigious index of the largest publicly traded companies. The company’s strategic initiatives come amid mounting challenges in the Bitcoin mining industry. With block rewards diminishing and competition intensifying, miners must navigate volatile market conditions and rising operational costs. MARA’s focus on innovation, coupled with its robust financial strategy, positions it well to thrive in this evolving landscape. Looking ahead, MARA’s achievements in 2024 set a strong foundation for continued growth. The company’s record-breaking hashrate and strategic Bitcoin acquisitions reinforce its role as a major player in the Bitcoin ecosystem. Key developments to watch include: Bitcoin Lending Expansion: MARA’s lending program could pave the way for more extensive revenue diversification strategies in the mining sector. Potential Nasdaq 100 Inclusion: With Michael Saylor’s endorsement, MARA’s trajectory toward becoming a Nasdaq 100 constituent signals growing recognition of Bitcoin-focused companies in mainstream finance. Global Mining Competition: As MARA expands its hashrate, its ability to compete with international mining operations, particularly in China, will be crucial. MARA’s evolution from Marathon Digital to a Bitcoin powerhouse exemplifies the potential of the cryptocurrency mining sector. By combining cutting-edge technology with strategic financial management, MARA is shaping the future of Bitcoin mining and adoption. As the industry navigates challenges and opportunities, MARA’s innovative approach serves as a benchmark for mining companies worldwide.
