Bitcoin-backed financing is gaining traction among public companies as institutional borrowers increasingly look to unlock cash from their BTC holdings without selling the underlying asset.
The market is evolving beyond simple short-term loans, with lenders now offering larger facilities, longer repayment periods and financing terms tailored to corporate needs.
MARA Holdings (MARA) recently demonstrated the trend by using 18,750 BTC as collateral for $600 million in two term loans provided by Coinbase Credit and Two Prime Lending.
The pledged bitcoin represented approximately 53% of MARA’s BTC holdings when the loans were arranged. At closing on Aug. 4, the collateral was worth about $1.2 billion.
MARA said it could use the financing for general business purposes, including its proposed acquisition of Long Ridge Energy & Power. The Ohio-based gas-fired power facility could serve both bitcoin mining operations and infrastructure requirements associated with artificial intelligence.
The deal reflects a broader shift in corporate bitcoin strategy. Rather than liquidating BTC to fund business activities, companies are increasingly treating their holdings as collateral that can be used to access traditional forms of credit.
Two Prime CEO Alexander Blume said the secured bitcoin lending market is becoming a more mature financial product. He noted that lenders are expanding their offerings to include longer-duration loans, customized financing terms and warehouse facilities aimed at institutional clients.
Two Prime’s loan to MARA carries a fixed interest rate of 7.65% and matures in August 2028. According to Blume, demand for bitcoin-backed borrowing has risen in recent months as institutions seek to finance capital expenditures while continuing to hold BTC.
The underlying loan agreements are becoming more detailed as well. Recent regulatory filings include provisions addressing collateral custody, margin requirements and liquidation procedures, while lenders are offering a wider range of loan sizes and maturities.
The sector is attracting additional players. Blume said lenders such as Ledn and Kraken have expanded their bitcoin-backed offerings through asset-backed securities and warehouse financing arrangements.
The development could eventually have broader implications for financial markets as traditional assets increasingly migrate onto blockchain networks.
Blume said the infrastructure and expertise developed through secured bitcoin lending could become valuable as more of the financial system moves onchain, including markets for tokenized equities.
As public companies continue adding bitcoin to their balance sheets, the ability to borrow against those holdings could become a key component of corporate digital-asset management. The strategy allows companies to access liquidity while preserving their exposure to potential future gains in bitcoin.
