Marathon Digital Holdings Expands Credit Facilities, Increasing Debt Funding Capacity by $100 Million
August 01 2022 - 4:05PM
Marathon Digital Holdings, Inc.
(NASDAQ:MARA) ("Marathon"
or "Company"), a leader in supporting and securing the
Bitcoin ecosystem, has expanded its credit facilities with
Silvergate Bank, the leading provider of innovative financial
infrastructure solutions to the digital currency industry, by
refinancing its existing $100 million revolving line of credit and
adding an additional $100 million term loan on July 28.
The $100 million term loan includes a delayed draw feature that
grants Marathon the ability to draw $50 million at the time of
closing and an additional $50 million up to 270 days after closing.
The term loan carries a variable interest rate with the initial
draw currently priced at 7.25%. The Company also announced the
refinancing of the $100 million revolving line of credit that was
previously set to expire in October 2022. There are no amounts
outstanding under the revolving credit facility at this point. Both
facilities are secured by bitcoin and mature in July 2024.
“We are pleased to be closing on these debt facilities and
believe that the combination of a term loan and revolver provide
Marathon with exceptional flexibility as to our funding options,”
said Hugh Gallagher, Marathon’s CFO. “With these facilities in
place, we have achieved our goals of adding both capacity and
optionality in financing our future operations growth. We
thank the team at Silvergate for their engagement as we
collaborated to put these facilities in place.”
Investor Notice Investing in our
securities involves a high degree of risk. Before making an
investment decision, you should carefully consider the risks,
uncertainties and forward-looking statements described under "Risk
Factors" in Item 1A of our most recent Annual Report on Form 10-K
for the fiscal year ended December 31, 2021, filed with the
SEC on March 10, 2022 and Quarterly Report on Form 10-Q for the
fiscal quarter ended March 31, 2022, filed with the SEC on May 5,
2022. If any of these risks were to occur, our business, financial
condition or results of operations would likely suffer. In that
event, the value of our securities could decline, and you
could lose part or all of your investment. The risks and
uncertainties we describe are not the only ones facing us.
Additional risks not presently known to us or that we currently
deem immaterial may also impair our business operations. In
addition, our past financial performance may not be a reliable
indicator of future performance, and historical trends should not
be used to anticipate results in the future. There are factors out
of our control, such as force majeure events and unforeseen
economic and other challenges to our hosting partners, which may
delay or prevent realization of our stated goals. Future changes in
the network-wide mining difficulty rate or Bitcoin hash
rate may also materially affect the future performance of
Marathon's production of bitcoin. Additionally, all discussions of
financial metrics assume mining difficulty rates as of July 2022.
The total network’s hash rate data is calculated from a third-party
source, which is available here:
https://www.blockchain.com/charts/hash-rate. Data from third-party
sources has not been independently verified. See "Forward-Looking
Statements" below.
Forward-Looking Statements Statements made
in this press release include forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements can be identified by the use of words
such as “may,” “will,” “plan,” “should,” “expect,” “anticipate,”
“estimate,” “continue,” or comparable terminology. Such
forward-looking statements are inherently subject to certain risks,
trends and uncertainties, many of which the Company cannot predict
with accuracy and some of which the Company might not even
anticipate and involve factors that may cause actual results to
differ materially from those projected or suggested. Readers are
cautioned not to place undue reliance on these forward-looking
statements and are advised to consider the factors listed above
together with the additional factors under the heading “Risk
Factors” in the Company's Annual Reports on Form 10-K, as may be
supplemented or amended by the Company's Quarterly Reports on Form
10-Q. The Company assumes no obligation to update or supplement
forward-looking statements that become untrue because of subsequent
events, new information or
otherwise. About Marathon Digital
Holdings Marathon is a digital asset technology
company that focuses on supporting and securing the Bitcoin
ecosystem. The Company is currently in the process of becoming one
of the largest and most sustainably powered Bitcoin mining
operations in North America, while remaining asset light.
Marathon Digital
Holdings Company Contact: Telephone:
800-804-1690Email: ir@marathondh.com
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