Marathon mining pool will use the Federal Reserve dollars to finance the purchase of new ASIC equipment that it manages. The agreement allows the mining company to use the extra money, if necessary to mine more bitcoins.
The Bitcoin mining firm Marathon Digital Holdings now has a revolving credit line of USD 100 million approved by the North American Silvergate Bank, a member of the United States Federal Reserve (Fed).
The mining company will use the amount received to finance the ASIC equipment that it will receive soon to expand its fleet. Marathon currently has 25,272 active miners producing approximately 2.7 EH / s, as reported in a statement.
The agreement between Marathon and Silvergate refers to a common fund that the company dedicated to mining Bitcoin will draw on when needed. You can think of it as a limited credit card, but on a grand scale.
The credit is available for one year and can be renewed if supported by Silvergate Bank and Marathon. In addition, it represents an essential benefit for the mining company, which will not have to sell its bitcoins (BTC) to make new investments.
The mining company will rely on the traditional financial system that issues money based on abundance to invest in mining farms that mine digital currencies focused on scarcity.
The mining company adds that “the $ 100 million revolving credit line from the Federal Reserve will be backed up by bitcoin and USD.” From this, Silvergate Bank accepted the cryptocurrency as a necessary guarantee for the creditor as insurance against non-payment.
A rising bitcoin production
Marathon Digital also presented a balance sheet in which it reports that it has already received almost 27,000 ASIC miners from Bitmain this year. However, not all of these teams are operational as it has received more than active ones.
It stands out that it mined 1,252 new bitcoins during the third quarter of 2021, which increased production by 91% compared to the previous quarter. In addition, “it produced 340.6 new bitcoins mined during September 2021, increasing the total of bitcoins to approximately 7,035 with a market value of approximately 336.3 million dollars.”
Marathon bought some 30,000 Antminer S19j Pro miners from the Chinese manufacturer Bitmain. The company’s investment was USD 120 million, and they expect the teams to arrive in the United States between January and June 2022.
Marathon will also build a new mining farm in Texas, which will be made this October and begin operations in March of next year. According to the company’s plans, the facility will house 73,000 ASIC.