Marathon Digital Holdings, one of the largest publicly traded American Bitcoin mining companies, has obtained a US$100 million credit line from Silvergate Bank, secured with bitcoin and USD.
According to its press release, the mining firm secured the loan on October 1. The credit line will be available for a year, and is expected to be renewed annually by agreement between both parties. The funds will be used to expand the company’s BTC mining operations and to acquire new equipment.
[The] revolving line of credit is secured by our bitcoin holdings and USD [and] consistent with our strategy to focus on agility as it enhances our ability to act opportunistically and in a manner that is efficient for both our business and our shareholders. By having this line of credit in place, we believe Marathon is better positioned to continue growing over the coming quarters.Fred Thiel, CEO, Marathon Digital
Over $360 Million in BTC Holdings
The firm also revealed its quarterly BTC production and miner installation updates. By the third quarter of 2021, the company produced 1,252.4 new minted bitcoins, 340.6 minted in September alone. This represents a 91 percent production increase quarter-on-quarter and increasing total bitcoin holdings to approximately 7,035.
At press time, Bitcoin was trading at US$51,260, which gives Marathon’s bitcoin holdings an approximate fair market value of US$361.2 million.
Not the First BTC-Backed Loan
This is the first BTC-backed loan issued by an American bank, but not the first BTC-backed loan as such. Crypto News Australia reported in July how Glen Oaks Escrow, a California-based escrow company, made its first BTC-backed refinance loan for a property in San Diego.
We have seen similar moves in Australia as some people use crypto to pay off their mortgages or even put their houses up for bitcoin.
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