Bitcoin-backed lending is entering its institutional era: Two Prime
- Institutions are increasingly borrowing against bitcoin to fund acquisitions and capital expenditure while retaining exposure to the asset.
- Two Prime says the market is maturing as lenders offer larger facilities, longer durations and more bespoke financing terms.
Institutional demand for bitcoin-backed loans is accelerating as lenders are offering larger facilities, longer maturities and more tailored terms.
MARA Holdings (MARA) provided one of the clearest examples this month, pledging 18,750 BTC to secure $600 million through two term loans from Coinbase Credit and Two Prime Lending.
The collateral, representing roughly 53% of Marathon’s bitcoin holdings at the time, was valued at approximately $1.2 billion when the transactions closed on Aug. 4.
MARA said it may use the proceeds for general corporate purposes, including its planned acquisition of Long Ridge Energy & Power. The Ohio gas-fired power plant could support both bitcoin mining and artificial-intelligence infrastructure.
The financing reflects a broader shift among corporate bitcoin holders. Rather than sell their tokens to raise cash, companies are increasingly using them as collateral.
“Secured BTC loans are maturing as a product,” Two Prime CEO Alexander Blume told CoinDesk in an interview. “We are seeing firms like ours develop the ability to offer longer duration, more bespoke terms and traditional warehouse lines to service institutional clients.”