Here’s how Marathon Digital bet on the industry by receiving credit from Silvergate
Contents
- Company’s Bitcoin Production
- Trade Credit from Silvergate
Marathon Digital Holdings, one of the largest Bitcoin miners in North America, has published an unaudited update to Bitcoin production and miner installation for September 2021 and announced a $100 million line of credit from Silvergate Bank, a leading provider of financial infrastructure.
Company’s Bitcoin Production
Marathon produced more than 2,000 bitcoins in 2021. Currently, the company owns more than 7,000 bitcoins, including coins that the company purchased instead of mining, in January 2021. The company’s holdings are now valued at about $336 million.
At the time of publication, the company has reported receiving 26,900 ASIC miners from Bitmain. But due to shipping issues causing longer delivery times, miners’ posting has been delayed.
While the company expects new miners to be produced with significant delays, they still expect to pre-purchase mining rigs, with delivery expected in the middle of next year. After receiving the required hardware, the company’s hash rate will reach approximately 13.3 EH/s.
Trade Credit from Silvergate
In October, the company secured a $100 million revolving credit line with Silvergate Bank, which is currently the leading provider of financial infrastructure to companies providing digital solutions and services. Marathon will be able to use the funds for corporate purposes which include purchasing bitcoin mining equipment.
The credit is backed by Bitcoin and USD and will be available for a one-year marathon, with the possibility of subsequent renewal based on the approval of both companies.
According to the CEO of the company, the company will use the funds provided in order to continue to grow in the future. The use of external funds is a more convenient way for the company to continue to develop without the obligation of realizing its money.