Silvergate Bank (SI) provided Marathon Digital Holdings (MARA) with a new $100 million line of credit. Despite having thousands of idle bitcoin mining rigs, they added another one of the exact sizes from the same lender on Monday, according to a press release. Given the steep decline in cryptocurrency prices this year, which has left Marathon and other bitcoin miners on the shakier financial ground, Marathon’s ability to refinance stands out. Along with the Federal Reserve raising interest rates, the lending market has also sharply contracted. Marathon has the flexibility to handle market volatility because of the Silvergate loan. Marathon to Withdraw $50 Million Marathon stated on Monday that Silvergate’s initial credit line, due to expire in October, had not yet been used. The two facilities’ bitcoin security keys expire in June 2024. As stated in the press release, the new term loan has a delayed draw feature that allows Marathon to withdraw $50 million at closing and another $50 million 270 days later. According to the company, the term loan has a variable interest rate now set at 7.25%. Marathon’s operational fleet of miners totaled 25,272 when it announced its initial revolving credit arrangement from Silvergate in October 2021. Based on its June operations update, there were only 6,300 active miners at the end of the month. Marathon Acquires Additional Hosting Agreements Marathon asserted that it had acquired additional...
Shiba Inu Signals Potential Price Surge Soon
