MARA Secures $200M Credit Line with Bitcoin Collateral
Collateral estimated to be around 4,000 BTC
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Bitcoin mining giant MARA is increasing its financial leverage as bitcoin’s price reaches its highest level since July 30.
On Tuesday, MARA announced it had secured a $200 million line of credit from an undisclosed counterparty, using a portion of its bitcoin holdings as collateral. The company stated it would utilize the funds to capitalize on strategic opportunities and for other general corporate purposes.
While MARA did not provide specific details about the credit line’s terms, recent agreements by industry competitors have featured a loan-to-value ratio of around 70%, with a weighted average interest rate of 4.2%.
Assuming a 70% loan-to-value ratio, MARA would need to pledge approximately 4,000 BTC as collateral for the $200 million credit facility.
This line of credit follows MARA’s issuance of $300 million in convertible notes two months ago, which carried an interest rate of 2.125%. The company subsequently used $250 million from the proceeds to acquire 4,144 BTC.
As of September 30, MARA held a total bitcoin reserve of 26,842 BTC, valued at $1.8 billion, with bitcoin’s price rising above $67,000.
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