Marathon Digital explores strategic growth with $200 million loan collateralized with Bitcoin

Bitcoin miner Marathon Digital Holdings said it has secured a $200 million line of credit from an undisclosed lender, according to an Oct. 15 statement.

According to the company, the credit facility is backed by a portion of its Bitcoin holdings and will be used to seize strategic opportunities and support general corporate initiatives.

Marathon did not disclose specific details regarding the terms of the credit line and has yet to respond to CryptoSlate’s request for further comment as of press time.

Industry analysts view this move as a way for Marathon to monetize its Bitcoin holdings without issuing additional shares. This approach allows the company to either purchase more Bitcoin or cover operating costs for an extended period while retaining its total Bitcoin output.

Potential uses for the fund could also include share buybacks or strategic acquisitions, although these remain speculative.

In July, Marathon reaffirmed its strategy of holding all mined Bitcoin on its balance sheet, citing favorable market conditions and growing institutional support for the top crypto.

According to data from Bitcoin Treasuries, the company is the second-largest public holder of Bitcoin globally, with 26,842 BTC valued at approximately $1.8 billion.

Increased Bitcoin production

The new credit facility comes as Marathon has ramped up its Bitcoin production. The company produced 705 BTC in September, up from 673 BTC in August.

This increase reflects the company’s robust global operations, which have enabled it to raise its energized hash rate by 5%, reaching 36.9 exahashes per second (EH/s). Marathon aims to further expand its hash rate to 50 EH/s by the end of the year.

Commenting on the company’s performance, Marathon’s Chairman Fred Thiel said:

“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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