Marathon Digital Holdings has expanded its credit facilities with Silvergate Bank, a provider of innovative financial infrastructure solutions to the digital currency industry, by refinancing its existing $100 million revolving line of credit and adding an additional $100 million term loan on July 28.
The $100 million term loan includes a delayed draw feature that grants Marathon the ability to draw $50 million at the time of closing and an additional $50 million up to 270 days after closing. The term loan carries a variable interest rate with the initial draw currently priced at 7.25%. The company also announced the refinancing of the $100 million revolving line of credit that was previously set to expire in October 2022. There are no amounts outstanding under the revolving credit facility at this point. Both facilities are secured by bitcoin and mature in July 2024.
“We are pleased to be closing on these debt facilities and believe that the combination of a term loan and revolver provide Marathon with exceptional flexibility as to our funding options,” Hugh Gallagher, CFO of Marathon, said. “With these facilities in place, we have achieved our goals of adding both capacity and optionality in financing our future operations growth. We thank the team at Silvergate for their engagement as we collaborated to put these facilities in place.”
