Marathon pledges 18,750 BTC to secure $600M in loans

Marathon Digital Holdings pledged 18,750 bitcoin to secure $600 million of new bitcoin-backed loans from Coinbase Credit and Two Prime Lending, closing the two term loans on Aug. 4, according to a quarterly filing. The pledged coins were valued at about $1.2 billion at the time of closing.

The financing includes $300 million of new funding from Coinbase and a separate $300 million loan from Two Prime. Coinbase’s facility is structured as a $450 million commitment that refinanced an existing $150 million credit line, bringing combined facility principal to $750 million. Both facilities were fully drawn at closing and the pledged collateral was worth about 1.6 times the combined loan principal.

Loan terms differ by lender. Coinbase’s debt carries a floating rate equal to the midpoint of the Federal Reserve’s target range plus 3.875 percentage points-roughly 7.5% given the Fed’s 3.5%–3.75% range at the time-and matures Aug. 4, 2028, with an automatic one-year extension unless canceled. Two Prime’s loan has a fixed rate of 7.65% and matures Aug. 3, 2028. At current rates, the two facilities would generate about $56.7 million of annual interest expense if principal levels remain unchanged.

Marathon must maintain required collateral levels and could be required to pledge additional bitcoin if the token’s price declines. The filing notes lenders may liquidate pledged coins if the company fails to meet margin calls. The 18,750 bitcoin pledged represent almost 53% of the 35,577 tokens Marathon reported holding on June 30. Before the new loans, the company had 4,528 bitcoin already pledged as collateral, including 4,253 securing the refinanced Coinbase line.

The company said the new proceeds will be available for general corporate purposes, including part of the cash consideration for its planned acquisition of Long Ridge Energy & Power LLC from FTAI Infrastructure Inc. Announced in April, that transaction carries an enterprise value of roughly $1.5 billion, including assumed debt. Long Ridge owns a gas-fired power plant in Hannibal, Ohio, with an expected nameplate capacity of 505 megawatts and more than 1,600 acres of industrial land that Marathon intends to use for power generation, bitcoin mining and a potential AI and high-performance computing campus.

Marathon sold 23,093 bitcoin for about $1.6 billion in the first half of 2026, reducing its holdings from 53,822 tokens at the end of December to 35,577 on June 30. Those remaining coins were valued at roughly $2.1 billion at quarter-end. The company reported $421.3 million of cash and approximately $2.4 billion of debt at the end of June after repurchasing roughly $1 billion of convertible notes earlier in the year using proceeds from bitcoin sales.

In the second quarter, Marathon posted a net loss of $611.3 million, compared with net income of $808.2 million a year earlier, driven in part by $342.7 million of fair-value losses on its bitcoin holdings. Revenue fell 27% to $174.9 million. The quarterly filing notes increasing use of bitcoin holdings as a source of financing.