$3.5 Billion Company Just Bet $100 Million On Bitcoin By Securing Revolving Line Credit With Silvergate
Marathon Digital Holdings, one of the largest Bitcoin mining companies in North America, has published an unaudited Bitcoin production and miner installation update for September 2021 and announced a $100 million credit line provided by Silvergate Bank, a leading provider of financial infrastructure.
Company's Bitcoin production
Marathon has produced more than 2,000 Bitcoins in the year 2021. Currently, the company holds more than 7,000 Bitcoins, including coins that the company bought instead of mining, in January 2021. The company's holdings are now valued at approximately $336 million.
At press time, the company reported the receipt of 26,900 ASIC miners delivered from Bitmain. But due to shipment issues causing longer delivery times, the deployment of miners was delayed.
While the company expects new miners to be produced with a significant delay, they still anticipate previously purchased mining rigs, with deliveries expected in the middle of next year. After receiving the ordered machines, the company's hashrate will hit approximately 13.3 EH/s.
Commercial credit from Silvergate
In October, the company secured a $100 million revolving line of credit with Silvergate Bank, which is currently a leading provider of financial infrastructure for companies providing digital solutions and services. Marathon will be able to use funds for corporate purposes that include the acquisition of Bitcoin mining equipment.
The credit is backed by Bitcoin and USD and will be available for Marathon for one year, with possible subsequent renewal upon agreement by the two companies.
According to the company's CEO, the company will use the funds provided in order to keep growing in the future. Using external funds is a more convenient way for the company to continue developing without the obligation to realize its funds.Source