Bitcoin-backed lending is entering its institutional era: Two Prime

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.”

Two Prime’s loan to MARA carries a fixed interest rate of 7.65% and matures in August 2028. Blume said borrowing demand has increased in recent months, with institutions tapping bitcoin holdings to finance capital expenditure while retaining exposure to the asset.

The structures are also becoming more sophisticated. Recent regulatory filings show agreements with detailed provisions covering margin calls, collateral custody and liquidation, alongside a wider range of loan sizes and maturities.

Lenders including Ledn and Kraken have also expanded the market through asset-backed securities and warehouse facilities linked to bitcoin collateral, according to Blume.

The development could have implications beyond bitcoin lending as more financial assets move onto blockchain-based infrastructure.

“This core competency will grow increasingly relevant as the broader financial system comes on-chain,” Blume said, pointing to tokenized equities as one potential area of growth.

As more publicly traded companies add bitcoin to their balance sheets, the ability to borrow against those holdings is emerging as an increasingly important part of digital-asset corporate finance.