Marathon Digital Pledges 18,750 BTC for $600M Financing Package

MARA Holdings completed two loans totalling $750 million in principal with Coinbase Credit and Two Prime Lending on August 4, pledging 18,750 BTC as collateral. The pledged Bitcoin was valued at approximately $1.2 billion at the time of closing, representing nearly 53% of the 35,577 BTC the company held at the end of June. However, MARA will receive only $600 million in new funding because the $450 million Coinbase facility includes a $150 million refinancing of an existing credit line.

Coinbase supplied $300 million in additional capital, while Two Prime provided another $300 million. The Coinbase loan carries an interest rate of approximately 7.5%, while Two Prime charges a fixed 7.65% rate. If MARA maintains the entire $750 million outstanding, the loans would generate approximately $56.7 million in annual interest costs.

MARA intends to deploy the proceeds toward energy acquisitions, Bitcoin mining, artificial intelligence, and high-performance computing infrastructure. The company also plans to use part of the funds for its acquisition of Long Ridge Energy & Power in Ohio, a gas-fired power plant with an expected capacity of 505 megawatts and more than 1,600 acres of industrial land. MARA aims to develop the site for power generation, Bitcoin mining, and a potential AI campus.

The Bitcoin-backed financing arrangement creates additional downside risk. MARA must maintain required collateral levels, and a significant decline in Bitcoin's price could trigger margin calls, potentially forcing the company to liquidate pledged BTC to meet lender requirements.