MARA Pledges 18,750 Bitcoins for $600 Million Loan to Expand Business

MARA completed two loans on August 4, pledging 18,750 Bitcoins to secure $600 million in new debt, with the funds aimed at expanding its power generation and AI infrastructure business. The collateral was valued at approximately $1.2 billion at the time of the transaction. The total principal of the two loans amounts to $750 million, with Coinbase Credit providing $450 million, which includes refinancing of an existing $150 million credit line and an additional $300 million; Two Prime Lending provided $300 million, and both loans have been fully drawn. The interest rate on the Coinbase loan is set at the midpoint of the Federal Reserve's target rate range plus 3.875 percentage points, maturing on August 4, 2028; the Two Prime loan has a fixed interest rate of 7.65%, maturing on August 3, 2028. If the principal remains unchanged, the annual interest expense for both loans is approximately $56.7 million. MARA stated that the loan funds will be used for general corporate purposes, including part of the cash consideration for the acquisition of Long Ridge Energy & Power LLC, which has an enterprise value of about $1.5 billion. Long Ridge owns a 505-megawatt gas power plant and over 1,600 acres of industrial land, which MARA plans to use for power generation, Bitcoin mining, and potential AI and high-performance computing facilities.

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