Mining company Marathon Digital has secured a $ 100 million revolving credit line with Silvergate Bank. The quarterly figures promise bullish prospects.
Marathon Digital Holdings is one of the largest and most important mining companies in North America. This week it published numbers on business in the third quarter of 2021. In addition, a line of credit in the amount of 100 million US dollars was announced by Silvergate Bank. The institute is one of the leading providers of innovative financing models for the crypto industry. With a production of 1,252.4 BTC in the third quarter, Marathon was able to increase production by 91 percent compared to the previous quarter. This means that 2098 BTC are available for the entire year 2021.
Our September production numbers were impacted by a significant increase in the network’s hash rate, the luck factor inherent in Bitcoin mining, and two days of planned downtime at Hardin Power Plant. We believe that over time, as we keep bringing new miners up and running, our production will become more stable
, says Marathon CEO Fred Thiel.
As a result, Marathon holds about 7,035 BTC with it, including the 4,812.66 BTC the company acquired in January 2021 at the then rate of $ 31,168. At the time of this writing, the market value of a bitcoin is approximately $ 50,077. That means the approximate market value of Marathon’s current Bitcoin holdings is around $ 357.2 million.
Marathon Digital buys new miners on a large scale
It was only in August that Marathon announced that it would go on the offensive again when it came to mining infrastructure. 30,000 new Antminer S19j Pros fill the order books of the Chinese manufacturer for ASIC chips Bitmain. By October 1, 2021, Bitmain had already delivered approximately 26,960 top-class ASIC miners to the company’s mining facility in Hardin, MT. In September, however, global logistics problems began to affect deliveries. Delivery times dragged on and threatened to affect the original schedule for the deployment of the miners.
Deliveries by miners may continue to fluctuate in the near future. Nonetheless, based on current estimates, Marathon continues to assume that all previously purchased miners will be delivered by mid-2022. At this point, the company’s mining fleet is expected to consist of approximately 133,000 rigs. The total output is about 13.3 EH / s.
Marathon also announced that it has received a $ 100 million line of credit from the crypto-friendly bank Silvergate. The company said it will use the loan to purchase additional mining equipment and finance its mining activities. Marathon Digital said it expects Silvergate to renew the revolving credit line annually after the initial one-year agreement.