The revolving line of credit from Silvergate Bank will be available to the mining company Marathon Digital for a year, and then will be renewed by agreement of the parties.
Marathon Digital announced that it is using the loan to buy equipment to mine Bitcoin and finance mining operations. The company also expressed hope that Silvergate Bank will renew the loan annually. Marathon Digital CEO Fred Thiele said the company will be able to increase the hash rate to 13.3 Eh / s by mid-2022.
He said that in the third quarter, the company increased its bitcoin mining to 1,252 BTC, up 91% from the previous quarter. As a result, the company’s assets increased to 7,035 BTC including 4,812.66 BTC, which Marathon acquired in January 2021 at an average price of $ 31,168 per bitcoin. As of October 4, the total value of BTC owned by the company is about $ 346.2 million.
According to the head, the production performance was significantly affected by the increase in the hash rate on the Bitcoin network. As negative factors, the head named the planned downtime of the Hardin power plant and the logistical problems with the supply of mining equipment in September, which affected the speed of the deployment of bitcoin mining.
The company’s bitcoin production surged after Marathon bought 26,960 ASIC miners from Bitmain. In the near future, the company is going to buy another 8,459 pieces of equipment. By mid-2022, Marathon plans to increase the number of ASIC miners to 133,000 units. In September, Marathon Digital took first place in the volume of stored bitcoins among North American mining companies.
