The crypto market may be experiencing volatility, but this is not an obstacle to the development of the industry. So much so that although some crypto money companies have expanded their investments and activities.
One of these companies, Marathon Digital, refinanced and doubled an existing $100 million line of credit.
Marathon Digital Doubled Its Credit Capacity
Marathon Digital, which recently announced on its official blog page, announced that it had not withdrawn any of its initial credit line from Silvergate, which will expire in October.
According to the press release, both facilities are secured with Bitcoin, and it was stated that June transactions will expire in 2024. In addition, the new term loan includes a delayed draw facility. This is Marathon’s ability to withdraw $50 million at the time of closing and another $50 million 270 days after closing. The company stressed that the term loan has a floating interest rate currently at 7.25%.
Making a statement on the subject, Hugh Gallagher, CFO of Marathon, made the following statements:
“We are pleased to close these debt facilities. We believe the combination of term loan and revolver gives Marathon exceptional flexibility in our financing options. With these facilities, we have met our goals of adding capacity and optionality to finance the growth of our future operations.”