MARA Pledges Bitcoin Holdings for $600 Million in New Loans from Coinbase and Two Prime
MARA Holdings has taken out new loans worth $600 million from Coinbase Credit and Two Prime Lending, using a significant portion of its Bitcoin holdings as collateral. The company pledged 18,750 BTC, valued at approximately $1.2 billion, in exchange for the funding.
The combined principal amount of the two facilities is $750 million, with $450 million coming from Coinbase Credit and $300 million provided by Two Prime Lending. The new loans will provide MARA with much-needed liquidity to support its expansion efforts, including its bid to acquire Long Ridge Energy & Power.
The company's Bitcoin balance sheet has become increasingly collateral-based, with over 50% of its estimated holdings now serving as security for the new loans. This financing arrangement allows MARA to tap into its existing assets without having to sell off a significant portion of its BTC on the spot market.
As part of its expansion plans, MARA aims to diversify its operations into energy infrastructure and future AI and high-performance computing applications. The company's use of Bitcoin as collateral for new loans represents a strategic move to utilize its existing assets as a source of funding, rather than relying on traditional capital markets.