MARA Locks Down $600M with BTC-Backed Loans Amid Energy Expansion

MARA Holdings has taken out two loans from Coinbase Credit and Two Prime Lending to fund its expansion plans. The company pledged 18,750 BTC as collateral for $600 million in new financing. This represents nearly 53% of MARA's total Bitcoin holdings at the end of June.

The loans are valued at a combined principal of $750 million, but MARA will only receive $600 million in fresh capital. Coinbase supplied $300 million and Two Prime provided another $300 million. The interest rates on both loans are around 7%, with Coinbase charging slightly less at 7.5%.

MARA plans to use the proceeds for energy acquisitions, Bitcoin mining, artificial intelligence, and high-performance computing infrastructure. The company also aims to develop a power generation facility, a Bitcoin mine, and an AI campus on a site it acquired in Ohio.

However, MARA's reliance on Bitcoin-backed financing creates additional risk. If the price of BTC falls sharply, lenders may demand more collateral or even liquidate the pledged assets if MARA fails to meet margin calls.