Coinbase Prime facilitates $450M crypto-collateralized loan for Marathon Digital

Marathon Digital Holdings just turned its Bitcoin stash into a $600 million credit line. The Bitcoin miner secured two term loans collateralized by 18,750 BTC, with Coinbase Credit supplying $450 million and Two Prime Lending kicking in another $300 million at a fixed 7.65% interest rate. The deal, announced on August 4, is one of the largest crypto-collateralized lending arrangements to date for a publicly traded company. How the deal is structured The total facilities amount to $750 million. That figure includes refinancing a $150 million existing credit line alongside $300 million in fresh capital. MARA pledged 18,750 BTC for the borrowing. At the time of the transaction, those coins carried a market value of approximately $1.2 billion, representing about 53% of the company’s total holdings of 35,577 BTC as of June 30. Both loans mature in August 2028. The Coinbase facility comes with an option for a one-year extension, giving MARA some breathing room if market conditions shift. Ongoing margin coverage requirements are baked into the agreements, which means MARA will need to keep a close eye on Bitcoin’s price relative to its loan-to-value ratios. Where the money is going The fu...