MARA Pledges $1.2B in Bitcoin for $750M Crypto-Collateralized Loan
Marathon Digital Holdings just put a chunk of its Bitcoin treasury to work in one of the largest institutional borrowing deals a public crypto miner has ever signed. The Nasdaq-listed miner, widely known as MARA, has secured $750 million in total credit facilities through a crypto-collateralized loan backed by Bitcoin, pledging 18,750 BTC to two separate lenders in a deal that underscores how far institutional crypto lending has matured since the last bear market.
Key takeaways
- MARA secured $750 million in total credit facilities, split between $450 million from Coinbase Credit and $300 million from Two Prime Lending.
- The company pledged 18,750 BTC as collateral, worth roughly $1.2 billion at the time of the transaction.
- Both loans mature in August 2028, with the Coinbase facility carrying a one-year extension option.
- Two Prime’s $300 million loan carries a fixed 7.65% interest rate, while the arrangement runs at roughly a 50% loan-to-value ratio.
- Proceeds will fund general corporate purposes and MARA’s planned $1.5 billion acquisition of Long Ridge Energy & Power.
Marathon Digital’s $750 Million Crypto-Collateralized Loan
MARA’s new borrowing arrangement is built around two term loans, and together they represent one of the biggest Bitcoin-backed lending deals ever struck by a publicly traded company. The $750 million figure covers both fresh capital and the refinancing of an older facility, giving the miner a substantially larger credit line than it had before.
… Continue reading the full article at the original source below.
