Key Insights
- MARA is increasingly treating Bitcoin as productive balance-sheet collateral rather than solely a treasury reserve.
- The borrowing supports a broader transition toward energy ownership, AI infrastructure and high-performance computing.
- Bitcoin-backed debt preserves liquidity but introduces collateral pressure during sharp cryptocurrency market declines.
MARA Holdings secured $600 million in new borrowing on Aug. 4 by pledging 18,750 Bitcoin worth about $1.2 billion. The financing gives the miner additional liquidity as it expands into power generation and artificial intelligence infrastructure.
The borrowing sits within two facilities carrying $750 million in combined principal. Coinbase Credit supplied one facility, while Two Prime Lending provided the other.
Bitcoin Treasury Becomes a Financing Tool
The financing followed a major strategic decision made earlier this year.
In April, MARA agreed to acquire Long Ridge Energy & Power for approximately $1.5 billion. The transaction includes existing Long Ridge debt and remains subject to closing conditions.
Long Ridge owns a gas-fired power plant in Hannibal, Ohio. Its nameplate capacity should reach 505 MW during the second half of 2026. The property also includes more than 1,600 contiguous acres.
MARA plans to use the campus for several computing and energy workloads. These include Bitcoin mining, AI infrastructure, critical IT services and wholesale power generation. Then, on Aug. 4, MARA Holdings completed the new Bitcoin-backed financing arrangements.
Coinbase supplied a $450 million facility. However, $150 million refinanced an existing Coinbase credit line. Therefore, Coinbase contributed $300 million of fresh capital.
Two Prime separately provided a fully drawn $300 million term loan.
Financing metric Amount or terms
New borrowing $600 million
Combined facility principal $750 million
Bitcoin initially pledged 18,750 BTC
Estimated collateral value $1.2 billion
Coinbase facility $450 million
Two Prime loan $300 million
Two Prime interest rate 7.65% fixed
Reported June Bitcoin holdings 35,577 BTC
The Coinbase facility carries a floating interest rate. It equals the federal funds target midpoint plus 3.875%. Meanwhile, Two Prime charges a fixed annual rate of 7.65%. Both lending arrangements mature in August 2028.
Collateral Creates Liquidity and New Exposure
The pledge of Bitcoin accounts for approximately 53% of MARA’s reported holdings as of June end.
MARA pledged 18,750 Bitcoin as collateral for $600M in new borrowing. 💸
That equals about 53% of its 35,577 $BTC holdings.
The loans were arranged through Coinbase Credit and Two Prime Lending. pic.twitter.com/iVti2eWxQV
— CryptosRus (@CryptosR_Us) August 9, 2026
That ratio is more than just eye-catching. MARA Holdings is able to transform much of its Bitcoin holdings into corporate financing capacity. But this deal also makes the Bitcoin market value link with liquidity directly.
Under both facilities, MARA is required to keep agreed-on ratios of collateral, i.e. the ratio of capital to assets in both cases. More collateral will be required or an alternative action will be granted if Bitcoin is falling low enough.
Not fulfilling those requirements may be a default. This meant that lenders would be given the ability to cash in pledged Bitcoin.
The filing doesn’t give any public specifics of the exact margin thresholds. So, the investors can’t determine a precise price at which the Bitcoin investment will require more collateral.
Figures frame the immediate balance-sheet implications.
- 18,750 BTC initially backs the two new lending facilities.
- $600 million represents genuinely new borrowing after the Coinbase refinancing.
- About 53% of June-end Bitcoin holdings now supports these facilities.
The strategy also follows substantial Bitcoin sales earlier this year.
MARA sold approximately 23,093 BTC during the first six months of 2026. Those sales supported operations, liquidity management and growth opportunities.
Long ridge pushes MARA beyond mining
The borrowing comes as MARA Holdings works to reduce its dependence on conventional Bitcoin mining economics. Long Ridge sits at the center of that strategy.
MARA expects the acquisition to expand its owned and operated power capacity substantially. The company also sees potential for long-term high-performance computing and AI workloads.
Control over power has become increasingly important for large computing projects. AI data centers require substantial electricity, land, cooling infrastructure and reliable grid connections.
Long Ridge provides several of those assets within one site. Still, the AI opportunity remains prospective. MARA has not announced completed AI tenant contracts for the campus.
The acquisition also carries significant financing requirements. Barclays previously committed up to $785 million through a 364-day secured bridge facility. That financing can backstop part of Long Ridge’s assumed debt.
Balance-sheet strategy faces its next test
The financing arrives after a difficult second quarter.
MARA reported $174.9 million in quarterly revenue and a $611.3 million net loss. Bitcoin valuation changes accounted for $342.7 million of that loss. Its Bitcoin holdings also fell to 35,577 BTC by June 30. That compared with 49,951 BTC one year earlier.
Yet the company has simultaneously reduced broader debt obligations. Total debt stood near $2.4 billion at June-end, compared with $3.6 billion at December 2025. That balance-sheet restructuring now intersects with MARA’s infrastructure expansion.
Long Ridge could provide the company with power assets supporting multiple revenue streams. The transaction is, however, subject to regulatory approvals and other customary closing conditions.
Conclusion
MARA Holdings has opted to borrow rather than sell a sizeable amount of Bitcoin right now to boost its liquidity.
This selection will ensure it maintains its cryptocurrency exposure while providing a more comprehensive infrastructure plan. However, it also puts a huge amount of the Bitcoin treasury in a situation of lenders’ collateral requirements.
The next big challenge will be the Long Ridge acquisition. If it works well, MARA could expand its operations into the power sector and into advanced computing.
If the price of bitcoin drops sharply, it will pose another problem. It can raise the requirement of collateral just at the time when the firm is investing in big projects for infrastructure.
