Home News Silvergate Bank issues $100M credit line to mining firm Marathon Digital

Silvergate Bank issues $100M credit line to mining firm Marathon Digital

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Silvergate Bank issues $100M credit line to mining firm Marathon Digital. Marathon Digital CEO Fred Thiel remarked, “We remain hopeful that we are in a good position to increase our hash rate to 13.3 EH/s by halfway through 2022”.

In fact, Marathon Digital Holdings, a crypto mining business located in the US, has acquired a $100M revolving line of credit with Silvergate Bank. Which will be paid out in USD and Bitcoin.

Furthermore, according to Marathon Digital, the mining company received a $100 million credit line from the crypto-friendly bank on October 1. The funds will be used to buy Bitcoin (BTC) mining equipment and fund the company’s mining activities. After the first one-year agreement, Marathon Digital expects Silvergate to extend the revolving line of credit on an annual basis.

Marathon Digital also declared that during Q3 of 2021, it minted more than 1,252 BTC, about $59.5M. With 340.6 BTC mined in Sep alone. A 91% increase over Q2. The rise in Bitcoin output comes after Bitmain sent the company 26,960 ASIC mining equipment. With another 8,459 miners on the way. Its present activities generate about 2.7 EH/s of hashrate.

“While the rate at which we accept miners has fluctuated in the past and may continue to do so in the near future, we are optimistic that, by halfway through 2022, we will be able to increase our hash rate to 13.3 EH/s.”, stated Marathon Digital CEO, Fred Thiel.

American Investments giants acquiring stakes in Marathon Digital

According to filings with the Securities and Exchange Commission, certain large American investment managers and financial services organisations have bought Marathon Digital shares. BlackRock possessed a 6.71% share in Marathon Digital as of June 30. And Fidelity Investments bought a 7.4% interest for $20 million in July.

Reports that China is tightening down on local miners and mulling regulating action on cryptocurrency may have influenced the increase in quarterly mining production. In 2021, cryptocurrency prices have also seen a lot of fluctuation. The price of BTC has grown by 16% in the previous week. Reaching $47,627 at the time of publishing, according to statistics.

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