Marathon Digital Diversifies Crypto Holdings with Institutional Partnership
Marathon Digital Holdings (MARA), one of the largest publicly traded Bitcoin miners in the U.S., has announced a strategic partnership with digital asset investment firm Two Prime. As part of this move, MARA will allocate 500 BTC (worth approximately $34 million) to Two Prime’s yield-generating products.
“We are focused on generating additional value from our Bitcoin holdings,” said Fred Thiel, CEO of Marathon Digital. “Partnering with Two Prime allows us to do so in a secure and risk-managed environment.”
Yield Strategy to Generate Passive Income
Marathon’s 500 BTC allocation is part of a broader yield optimization strategy that seeks to put idle assets to work without compromising on security or liquidity. Two Prime specializes in institutional-grade structured products designed to generate passive returns on digital assets while minimizing downside risk.
“Bitcoin holders like MARA are now seeking ways to earn from their assets, similar to traditional treasurers using cash reserves,” said Alexander Blum, co-founder of Two Prime.
Risk Management Remains a Priority
The move reflects a growing trend among institutional Bitcoin holders to diversify revenue streams beyond mining operations. However, Marathon emphasized that the yield generation will follow strict risk frameworks, ensuring funds remain liquid, protected, and compliant.
“We are not chasing DeFi-style returns. Our priority is safety and predictability,” Thiel said.
Two Prime’s strategies reportedly rely on options and derivatives-based products, avoiding highly speculative protocols and instead focusing on low-volatility returns.
Institutional Interest in Bitcoin Yield Continues to Rise
Marathon’s partnership with Two Prime underscores a broader institutional shift toward Bitcoin yield strategies. As of early 2025, more than $10 billion worth of Bitcoin is estimated to be involved in yield-focused platforms, from custodians like Anchorage Digital to structured firms like Galaxy Digital.
“This marks a new era where Bitcoin is not just a store of value, but also a yield-bearing asset for institutions,” said a Bloomberg crypto analyst.
Conclusion
Marathon Digital’s 500 BTC deployment to Two Prime represents a strategic shift in how Bitcoin miners view asset management. With margins tightening and competition increasing, mining firms are now evolving into more sophisticated digital asset managers.
“This is not about speculation — it’s about maximizing shareholder value,” Thiel concluded.