Mining company Marathon Digital Holdings has agreed to open a $100 million revolving line of credit from Silvergate Capital secured by bitcoin.
According to the terms, Marathon will receive $50 million immediately and $50 million over the next 270 days after July 28. The rate on the credit line will be variable and initially be 7.25% per annum. The agreement is for two years.
Marathon also agreed to refinance a $100 million loan due in October 2022. It has been extended until July 2024.
“Marathon has provided exceptional flexibility in terms of funding options ,” said CFO Hugh Gallagher.
Recall that public mining companies sold 14,600 BTC in June, which amounted to 23% of their total reserves in the first cryptocurrency.
Marathon Digital Holdings reduced bitcoin mining by 44% in the second quarter to 707 BTC. The company’s reserves were 10,055 BTC (~$199 million as of July 7), cash was $88.7 million, and outstanding loans were $35 million.