Marathon Digital Holdings, a cryptocurrency mining company with a focus on the blockchain ecosystem and the production of digital assets, has refinanced its existing $100 million loan at Silvergate Bank and has taken out another loan of the same size.
Many companies and miners have run into financial troubles as the cryptocurrency market has suffered a huge drop this year. Marathon Digitial also gained flexibility with its financing strategy to overcome the problems.
Marathon Digital Will Be able to Use Credit in Two Steps
With the Fed’s increase in interest rates, lending opportunities in the market changed shape. An additional $100 million credit line from Silvergate also became Marathon Digital’s drug in the cold market. The company said the term loan comes with a floating interest rate currently set at 7.25%.
Marathon announced on Monday that none of the initial line of credit has been withdrawn from Silvergate, which will expire in October. Two facilities, located in Texas and Montana, are secured with bitcoin and will remain protected until June 2024.
The second $100 million loan, taken in term, gives Marathon a delayed use. So Marathon can use the loan in two steps, $50 million at the time of possible closing and $50 million 270 days after closing.
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