Bitcoin Lending Enters Its Institutional Era, Says Two Prime

Public companies are increasingly using their bitcoin holdings as collateral to raise capital for acquisitions, expansion and other corporate expenses without having to sell their BTC.

Demand for bitcoin-backed institutional lending is gaining momentum, with lenders offering larger credit lines, longer repayment periods and structures tailored to corporate borrowers.

MARA Holdings (MARA) provided a notable example this month after pledging 18,750 BTC to obtain $600 million through two term loans arranged by Coinbase Credit and Two Prime Lending.

The bitcoin used as collateral accounted for about 53% of Marathon’s holdings at the time of the deals and was worth roughly $1.2 billion when the loans closed on Aug. 4.

MARA said the funds could be used for broader corporate needs, including its proposed acquisition of Long Ridge Energy & Power. The Ohio-based natural gas power facility could potentially serve both the company’s bitcoin mining operations and growing demand for artificial-intelligence infrastructure.

The transaction highlights a wider change in how corporate bitcoin holders are managing their assets. Instead of liquidating BTC to generate cash, companies are increasingly choosing to borrow against their holdings.

“Secured BTC loans are maturing as a product,” Two Prime CEO Alexander Blume said in an interview with CoinDesk. He noted that lenders are developing the capacity to provide longer-term financing, customized structures and conventional warehouse lines for institutional customers.

Two Prime’s financing for MARA carries a fixed annual interest rate of 7.65% and is scheduled to mature in August 2028. Blume said demand for this type of borrowing has grown in recent months as institutions seek to fund capital expenditures while maintaining their bitcoin exposure.

The lending structures are also becoming more complex. Recent regulatory filings show agreements containing specific terms for margin calls, custody arrangements and collateral liquidation, alongside financing options covering a broader range of loan amounts and maturities.

Other lenders are expanding the sector as well. According to Blume, companies such as Ledn and Kraken have increased their bitcoin-backed lending activities through asset-backed securities and warehouse financing arrangements tied to BTC collateral.

The evolution of bitcoin-backed credit could also become significant as traditional finance increasingly adopts blockchain infrastructure.

Blume said the expertise developed in secured digital-asset lending could become increasingly valuable as more parts of the financial system move onchain, including potentially tokenized stocks and other financial instruments.

As the number of publicly listed companies holding bitcoin on their balance sheets continues to grow, the ability to unlock liquidity from those assets without selling them is becoming an increasingly important tool in corporate digital-asset finance.