Bitcoin-backed loans are entering the institutional era, with MARA Holdings collateralizing 18,750 Bitcoin for a $600 million loan
According to CoinDesk, Bitcoin-backed loans are accelerating into the institutional era as public companies increasingly use their Bitcoin holdings as collateral to finance acquisitions and capital expenditures without selling the assets. This month, MARA Holdings (MARA) pledged 18,750 Bitcoin to secure two term loans totaling $600 million from Coinbase Credit and Two Prime Lending. This collateral represented approximately 53% of Marathon's Bitcoin holdings at the time and was valued at approximately $1.2 billion when the transaction closed on August 4. MARA stated that the loan proceeds may be used for general corporate purposes, including the planned acquisition of Long Ridge Energy & Power. Alexander Blume, CEO of Two Prime, said that secured Bitcoin loan products are maturing, and the company is developing the ability to offer longer cycles and more customized terms to serve institutional clients.
Source:CoinDesk · Source Link
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