MARA sold almost all its mined Bitcoin, then pledged 18,750 BTC for an AI dream with no disclosed safety net
MARA Holdings sold 2,213 Bitcoin in the course of the second quarter, equal to 91.37% of the two,422 BTC it mined, earlier than including $600 million of latest borrowing secured by Bitcoin collateral to assist finance its deliberate acquisition of Long Ridge, a power-generation website it goals to develop for AI and high-performance computing.
The company’s quarterly filing reveals that the brand new cash sits inside $750 million of totally drawn services entered into on Aug. 4. Coinbase offered a $450 million facility, together with $300 million of latest borrowing and the refinancing of an current $150 million mortgage. Two Prime offered a separate $300 million mortgage. MARA stated the proceeds can fund basic company functions, together with a part of the money consideration for Long Ridge.
The Bitcoin collateral pool is obvious, however remaining headroom shouldn’t be
MARA initially pledged 18,750 BTC throughout the 2 services. That Bitcoin collateral represents 52.7% of the 35,577 BTC it reported holding on June 30, though the comparability spans two completely different dates and doesn’t set up how a lot Bitcoin remained unrestricted after the loans closed.
At quarter-end, MARA labeled 26,307 BTC as unrestricted, 4,742 BTC as loaned and 4,528 BTC as pledged collateral. The latter two classes totaled 9,270 BTC. The firm didn’t disclose how a lot of that Bitcoin collateral pool overlaps with the 18,750 BTC pledged on Aug. 4, so including the 2 figures would double-count an unknown quantity.
The financing phrases depart the margin-call threshold unclear
Both services require MARA to keep up ample Bitcoin collateral. A failure to revive collateral can grow to be an occasion of default and permit the related lender to liquidate pledged Bitcoin. However, the submitting doesn’t disclose the numerical upkeep ratios, margin-call thresholds, remedy intervals, liquidation formulation or how the collateral is split between lenders. That makes it unattainable to calculate a Bitcoin price at which MARA would face a margin name or compelled sale.
The Coinbase facility, secured by Bitcoin collateral, bears curiosity on the midpoint of the federal funds goal vary plus 3.875% and matures in August 2028, with an automated one-year extension until canceled. The Two Prime mortgage carries a 7.65% fastened fee and in addition matures in August 2028.
MARA reported $174.9 million in second-quarter income and a $611.3 million net loss, together with a $342.7 million fair-value loss on Bitcoin. That mark-to-market loss is distinct from money leaving the enterprise. Separately, for the primary half of 2026, MARA reported $471.3 million of net money utilized in working actions. The six-month cash-flow determine shouldn’t be a direct reconciliation of the quarterly net loss.
Long Ridge approval continues to be pending
Long Ridge additionally stays conditional. The Federal Trade Commission granted early termination of the transaction’s antitrust ready interval on June 16, however MARA stated on Aug. 6 that approval from the Federal Energy Regulatory Commission was nonetheless pending.
The acquisition settlement has a Nov. 30 exterior date that will prolong to June 30, 2027, if specified regulatory situations stay unresolved. MARA may owe a $75 million termination price in sure circumstances. Management has focused at the least one AI or high-performance-computing lease throughout its portfolio earlier than year-end, however has not introduced a signed Long Ridge tenant.
The financing provides MARA $600 million of latest greenback liquidity for Long Ridge and different makes use of whereas putting 18,750 BTC in preparations that require Bitcoin collateral. Because the post-closing unrestricted rely stays undisclosed, its remaining Bitcoin headroom can’t be measured from the accessible figures.
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