Marathon Digital Holdings Gets $100 Million Credit For Crypto Mining Project

Crypto mine, owned by Marathon Digital Holdings. (photo: marathondh.com)

JAKARTA - Marathon Digital Holdings, a crypto mining company based in the United States, has secured a US$100 million (Rp1.425 trillion) revolving credit from Silvergate Bank using USD and Bitcoin.

According to information provided by Marathon Digital, the crypto mining company obtained a $100 million credit line from a crypto-friendly bank on Friday, October 1. The company will use the credits to purchase Bitcoin (BTC) mining equipment and fund its mining operations.

Marathon Digital said it expects Silvergate to renew its revolving line of credit annually after the initial one-year arrangement.

Additionally, Digital Marathon reports having earned over 1,252 BTC — roughly $59.5 million at the time of publication, during the third quarter of 2021, with 340.6 BTC minted in September alone. This is an increase of 91% from Q2.

The increase in Bitcoin production follows the company's acquisition of 26,960 ASIC mining machines from Bitmain, with an additional 8,459 miners expected soon. Its current operation generates a hashrate of around 2.7 EH/s.

“While the rate at which we accept miners has fluctuated and could continue to do so in the near term, we remain optimistic that we are well positioned to increase our hash rate to 13.3 EH/s by mid-2022,” said Digital Marathon CEO, Fred Thiel.

Several large US investment managers and financial services firms have bought stakes in Digital Marathon, according to a filing with the Securities and Exchange Commission. As of June 30, investment manager BlackRock had a 6.71% stake in Marathon Digital, while Fidelity Investments bought a 7.4% stake in the company for US$20 million in July.

The quarterly increase in mining production could be impacted by reports of China cracking down on local miners as well as consideration of regulatory action on crypto. Crypto prices will also experience significant volatility in 2021. According to data from Cointelegraph Markets Pro, the price of BTC has increased by 16% in the last week to reach 47,627 US dollars at the time of publication.

In fact, the price continued to increase to 49,000 US dollars on Monday, October 4 as the social media platforms, Facebook, Instagram and Whatsapp went out.