Marathon Digital Holdings, a US-based digital mining company, has secured a $100 million revolving line of credit with Silvergate Bank using US dollars and bitcoin.
According to information provided by Marathon Digital, the miner secured a $100 million credit line from the crypto-friendly bank on October 1. The company will use the credit to purchase Bitcoin (BTC) mining equipment and fund its mining operations. Marathon Digital said it expects Silvergate to renew the revolving line of credit annually after the initial one-year arrangement.
In addition, Marathon Digital reports that it produced more than 1,252 BTC – about $59.5 million at press time – during the third quarter of 2021 with 340.6 BTC in September alone, up 91% from the second quarter. The surge in bitcoin production comes after the company received 26,960 ASIC miners from Bitmain, with an additional 8,459 miners expected soon. Its current operations produce a hash rate of approximately 2.7 EH/s.
“While the rate at which we are accepting miners has fluctuated and may continue to do so in the near term, we remain optimistic that we are in a good position to expand our hash rate to 13.3 EH/sec by mid-2022,” Marathon said. Chief Digital Officer Fred Thiel.
Related: Marathon Digital Plans to Create a ‘Carbon Neutral’ Data Center for Bitcoin Mining
Some investment managers and major US financial services firms have purchased stakes in Marathon Digital, according to filings with the Securities and Exchange Commission. As of June 30, investment manager BlackRock owns a 6.71% stake in Marathon Digital, while Fidelity Investments purchased a 7.4% stake in the company for $20 million in July.
The increase in quarterly mining output could be affected by reports that China is cracking down on domestic miners as well as considering regulatory action over cryptocurrencies. Likewise, the price of cryptocurrency has seen a lot of volatility in 2021. According to data from Cointelegraph Markets Pro, the price of BTC is up 16% in the past week, reaching $47,627 at press time.
