Bitcoin-backed corporate borrowing is becoming a larger part of institutional crypto finance as public companies look to raise cash without reducing their BTC holdings.
Lenders are responding with bigger loan facilities, longer maturities and financing structures designed specifically for institutional borrowers.
MARA Holdings (MARA) highlighted the trend this month by putting 18,750 BTC up as collateral for $600 million in two term loans from Coinbase Credit and Two Prime Lending.
The pledged bitcoin represented roughly 53% of MARA’s holdings at the time and was worth about $1.2 billion when the transactions were completed on Aug. 4.
MARA said it could deploy the borrowed funds for general corporate purposes, including its planned purchase of Long Ridge Energy & Power. The Ohio natural gas-fired power plant could provide infrastructure for both bitcoin mining and artificial-intelligence workloads.
The deal reflects a growing willingness among corporate bitcoin holders to use BTC as a financing asset rather than sell it for liquidity.
Two Prime CEO Alexander Blume told CoinDesk that secured bitcoin lending is becoming a more established financial product. He said lenders are increasingly able to provide longer-dated loans, customized terms and warehouse facilities to institutional customers.
Two Prime’s portion of the MARA financing carries a fixed 7.65% interest rate and runs until August 2028. Blume said borrowing demand has picked up as companies seek funding for capital expenditures while keeping their bitcoin exposure intact.
The market is also developing more sophisticated loan structures. Recent filings include detailed provisions covering collateral custody, margin requirements and liquidation procedures, along with financing arrangements that vary in size and duration.
Other major lenders are expanding their presence in the sector. Ledn and Kraken, for example, have developed bitcoin-backed financing through structures including asset-backed securities and warehouse facilities, Blume said.
The growth of secured bitcoin credit could eventually extend beyond crypto lending as more traditional financial products are brought onto blockchain networks.
Blume said the expertise built around digital-asset collateral could become increasingly useful as the wider financial system moves onchain, with tokenized equities among the possible applications.
With more listed companies adding bitcoin to their balance sheets, borrowing against those holdings could become a standard component of corporate treasury strategy, allowing firms to access capital while maintaining exposure to BTC.
