MARA Holdings' Bitcoin Bet on AI Data Center Purchase Raises Concerns
MARA Holdings, a mining company, has been making significant moves in the crypto market. In its second quarter, it mined 2,422 BTC but sold 91.37% of that output, converting it to cash. This left 26,307 BTC unrestricted and 9,270 BTC pledged as collateral for loans.
The company then borrowed $750 million from Coinbase and Two Prime, with Bitcoin serving as collateral for the loans. The funds will be used to purchase Long Ridge, a power-generation site that MARA intends to develop into an AI data center.
However, the filing does not provide clear information on how much of the 9,270 BTC pledged as collateral is the same as the 18,750 BTC initially pledged. This makes it difficult to calculate the liquidation price and understand the risk associated with MARA's leveraged position.