Bitcoin Miner Marathon Digital Loans 300 Bitcoin to NYDIG for a 3% Interest Rate, Production Rises 6% in August
Publicly-listed Bitcoin miner Marathon Digital Holdings disclosed in its latest filing with the US Securities and Exchange Commission (SEC) that it has entered into a Material Definitive Agreement with Bitcoin financial service provider NYDIG.
According to the document, Marathon entered into a Master Securities Loan Agreement with NYDIG on August 27, 2021. As per this agreement, the company will loan its Bitcoin to NYDIG with an interest rate of 3% per annum.
Marathon loaned 300 BTC to NYDIG, interest on which will accrue on a daily basis but payable on a monthly basis. Marathon can recall its BTC at any time, it said.
Crypto enthusiast MacroScope first reported on this filing and noted that institutions and high net worth investors are increasingly seeing passive income from Bitcoin as “very attractive,” which he feels could even be a major BTC price driver.
Marathon also announced an expanded collaboration with NYDIG through which the miner will provide the members of MaraPool, its US-based carbon-neutral Bitcoin mining pool, with access to NYDIG’s institutional-grade services.
“NYDIG has been an important collaborator of ours, providing a variety of treasury management and trading services, including facilitation of the purchase of 4,812.66 bitcoins in January,” said Fred Thiel, Marathon’s CEO.
In the month of August, the miner produced 469.6 BTC and increased its total Bitcoin holdings to 6,695, worth $316.4 mln. Overall, Marathon has produced 1,757.9 BTC in 2021.
“During August, the total network’s hash rate increased more than 15%, and during that same time, we increased our bitcoin production by 6% month-over-month to 469.6 BTC,” said Thiel.
Currently, its mining fleet, making up 22,412 active miners, is generating 2.3 EH/s hash power with an additional 5,916 ASIC miners bought from Bitmain currently in transit while 21,584 ASIC miners have been received year to date.
The mining fleet is expected to consist of approximately 133,000 miners, and once all miners are installed in mid-2022, it would generate 13.3 EH/s.
Nasdaq listed Marathon Digital (MARA) is trading at $44.30, up 300% YTD but still down over 23% from early April ATH of $57.75.