Marathon Digital Holdings, a prominent Bitcoin miner, has recently announced securing a $200 million line of credit from an undisclosed lender, as stated on Oct. 15. The company revealed that the credit facility, backed by a portion of its Bitcoin holdings, will be utilized to capitalize on strategic opportunities and support general corporate initiatives.
While specific details about the terms of the credit line were not disclosed, industry experts speculate that this move allows Marathon to monetize its Bitcoin holdings without the need to issue additional shares. This approach provides flexibility to either acquire more Bitcoin, cover operational costs, or explore other financial strategies while maintaining its total Bitcoin output.
Marathon’s decision to hold all mined Bitcoin on its balance sheet aligns with its commitment to leverage favorable market conditions and growing institutional support for the leading cryptocurrency. The company currently holds 26,842 BTC, valued at approximately $1.8 billion, making it the second-largest public holder of Bitcoin globally, according to data from Bitcoin Treasuries.
Increased Bitcoin Production
As Marathon continues to ramp up its Bitcoin production, the company reported mining 705 BTC in September, a notable increase from the 673 BTC mined in August. This growth reflects Marathon’s robust global operations, which have enabled the company to boost its hash rate to 36.9 exahashes per second (EH/s), with plans to further expand to 50 EH/s by year-end.
Fred Thiel, Chairman of Marathon, commented on the company’s performance, stating, “Block wins during the month increased 6% from August while BTC production grew 5% to 705 BTC. We are proud to have surpassed a marathon worth of bitcoin HODL in September and currently have almost 27,000 BTC on our balance sheet.”
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