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Bitcoin-backed lending expands as firms borrow against BTC holdings
Two Prime said institutional loans are growing in size and duration, citing its $600 million facility to Marathon backed by 18,750 BTC.
CoinDesk reports that bitcoin-backed lending is moving into a more institutional phase, with public companies increasingly using their bitcoin holdings as collateral instead of selling the asset to raise cash.
Two Prime founder and CEO Alexander Blume said the market is maturing as lenders offer larger credit facilities, longer durations, and more tailored financing terms for institutional borrowers. He also noted that demand has picked up as firms look to fund acquisitions and capital spending while retaining ongoing exposure to bitcoin.
The outlet highlighted a recent example involving MARA Holdings, which pledged 18,750 BTC to secure $600 million through two term loans from Coinbase Credit and Two Prime Lending. CoinDesk said the collateral was valued at about $1.2 billion at closing on Aug. 4, representing roughly 53% of Marathon’s bitcoin holdings at the time.
CoinDesk added that the Two Prime loan has a fixed interest rate of 7.65% and matures in August 2028. It also described broader shifts in how these deals are structured, including regulatory filings that spell out margin calls, collateral custody, and liquidation provisions, while other lenders such as Ledn and Kraken have expanded participation via asset-backed securities and warehouse facilities.
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