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

"We remain optimistic that we are well positioned to scale our hash rate to 13.3 EH/s by the middle of 2022,” said Marathon Digital CEO Fred Thiel.

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

Marathon Digital Holdings, a United States-based crypto mining company, has secured a $100 million revolving line of credit with Silvergate Bank using USD and Bitcoin.

According to information provided by Marathon Digital, the mining firm obtained the $100 million credit line from the crypto-friendly bank on Friday. 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 reported it had produced more than 1,252 BTC — roughly $59.5 million at the time of publication — during the third quarter of 2021, with 340.6 BTC minted in September alone— a 91% increase over Q2. The increase in Bitcoin production follows the firm acquisition of 26,960 ASIC mining machines from Bitmain, with an additional 8,459 miners expected soon. Its current operations produce a hashrate of roughly 2.7 EH/s.

“While the rate at which we receive miners has fluctuated and may continue to do so in the near-term, we remain optimistic that we are well-positioned to scale our hash rate to 13.3 EH/s by the middle of 2022,” said Marathon Digital CEO Fred Thiel.

Some major U.S. investment managers and 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 owned 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 production could have been affected by reports of China cracking down on local miners as well as its consideration of regulatory actions on crypto. Crypto prices have likewise experienced significant volatility in 2021. According to data from Cointelegraph Markets Pro, the BTC price has risen by 16% in the last week to reach $47,627 at the time of publication.