Marathon Digital Holdings, a cryptocurrency mining firm based in the US, has received a $100 million revolving line of credit with Silvergate Bank, which will be paid out in USD and Bitcoin.
According to Marathon Digital, the mining company received a $100 million credit line from the cryptocurrency-friendly bank on Friday.
The credit will be used to buy Bitcoin (BTC) mining equipment and fund the company’s mining operations. After the first one-year agreement, Marathon Digital expects Silvergate to extend the revolving line of credit annually.
In addition, Marathon Digital said that during the third quarter of 2021, it created more than 1,252 BTC — nearly $59.5 million at the time of publication — with 340.6 BTC minted in September alone, a 91 percent increase over Q2.
The rise in Bitcoin production follows Bitmain’s acquisition of 26,960 ASIC mining rigs, with another 8,459 miners on the way. Its present actions generate around 2.7 EH/s of hashrate.
“While the rate at which we accept miners has fluctuated and may continue to do so in the near term, we remain confident that we are well-positioned to increase our hash rate to 13.3 EH/s by the middle of 2022,” Marathon Digital CEO Fred Thiel stated.
According to Securities and Exchange Commission filings, certain prominent U.S. investment managers and financial services firms have purchased Marathon Digital stock.
Marathon Digital was controlled by investment firm BlackRock as of June 30, and Fidelity Investments purchased a 7.4 percent stake in the company for $20 million in July.
Reports of China cracking down on domestic miners, as well as its consideration of regulatory moves on crypto, could have influenced the increase in quarterly mining production.
Cryptocurrency prices have also been extremely volatile in 2021. The BTC price has grown by 16 percent in the last week, according to statistics from Cointelegraph Markets Pro, to $47,627 at the time of publication.