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.

With @SenLummis's #Bitcoin Act in the pipeline, the US must lead in mining, blockspace, & hashrate so we can ensure that “...a sovereign can have sovereignty.” - @fgthiel

Read more: https://t.co/UNbfDAsZpr

— 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 the 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 Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term and existing note repurchases.

China Emerges as a Renewed Threat

Last week, MARA's 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 the 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 Hash Rate A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain Read this Term.”

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 the 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.