Marathon to secure a $100 million revolving credit line from Silvergate Capital

The mining company Marathon Digital Holdings has agreed to open a $100 million revolving credit line from Silvergate Capital, secured by Bitcoin.

$MARA Expands credit facilities, increasing debt funding capacity by $100 million 👇

— refinanced existing $100 million revolving LOC

— added $100 million term loan

Details here: https://t.co/GJ5bqdfAQ6

— Marathon Digital Holdings (@MarathonDH) August 1, 2022

Under the terms, Marathon will receive $50 million upfront and $50 million over the next 270 days after July 28. The line’s rate will be variable and initially 7.25% per year. The agreement runs for two years.

Marathon also agreed to refinance a $100 million loan maturing in October 2022. It has been extended to July 2024.

\”Marathon has provided exceptional flexibility regarding financing options\”, said CFO of the company, Hugh Gallagher.

In June, public mining companies sold a total of 14,600 BTC, representing 23% of their reserves in the top cryptocurrency.

In the second quarter, Marathon Digital Holdings reduced Bitcoin mining by 44% to 707 BTC. The company’s reserves stood at 10,055 BTC (~$199 million as of July 7), cash and cash equivalents were $88.7 million, and the outstanding balance of loans was $35 million.

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