Silvergate Bank issues $100M credit line to mining firm Marathon Digital

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Marathon Digital Holdings, a US digital mining company, secured a $ 100 million revolving line of credit with Silvergate Bank using US dollars and bitcoin.

According to information from Marathon Digital, the miner received a credit line of 100 million dollars from a crypto-friendly bank on Friday. The company will use the loan to buy Bitcoin mining hardware (BTC) and finance the mining operations. Marathon Digital said it expects Silvergate to renew its revolving credit line annually after the first one-year deal.

In addition, Marathon Digital reports that more than 1,252 BTC was produced in the third quarter of 2021 – approximately $ 59.5 million at the time of publication – of which 340.6 BTC alone in September, an increase of 91% from the second quarter. The increase in bitcoin production came after the company bought 26,960 ASIC miners from Bitmain, and another 8,459 miners are expected to appear soon. The current business produces a hash speed of around 2.7 EH / s.

“Although the rate at which we accept miners has fluctuated and may continue in the near future, we are optimistic that we have good opportunities to increase the hash rate to 13.3 EH / s by mid-2022” – said Fred. Thiel, CEO of Marathon. Digital.

RELATED: Marathon Digital Plans Carbon Neutral Bitcoin Mining Data Center

Several of the top investment managers and financial services companies in the United States have bought shares in Marathon Digital, according to applications from the Securities and Exchange Commission. As of June 30, BlackRock’s investment manager owns a 6.71% stake in Marathon Digital, and in July, Fidelity Investments acquired a $ 7.4% stake in the company for $ 20 million.

Quarterly production growth may be affected by reports that China has taken tough measures against domestic miners, as well as the assessment of cryptographic regulatory measures. Similarly, the price of cryptocurrency will be very volatile in 2021. According to Cointelegraph Markets Pro, the price of BTC has risen 16% in the last week and reached $ 47,627 at the time of publication.

Source: CoinTelegraph

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