Public companies are increasingly turning their bitcoin holdings into a source of financing, borrowing against BTC to fund acquisitions and investments while avoiding direct sales of the asset.

The institutional market for bitcoin-backed loans is expanding, with lenders providing larger credit facilities, extended maturities and more customized structures for corporate borrowers.

MARA Holdings (MARA) offered a recent example after securing $600 million in two term loans from Coinbase Credit and Two Prime Lending using 18,750 BTC as collateral.

The pledged coins represented about 53% of MARA’s bitcoin holdings at the time. When the transactions closed on Aug. 4, the collateral was valued at approximately $1.2 billion.

MARA said the proceeds could support general corporate requirements, including its planned acquisition of Long Ridge Energy & Power. The Ohio-based gas-fired power plant could provide capacity for both bitcoin mining and artificial-intelligence infrastructure.

The transaction highlights a shift in how companies are treating bitcoin on their balance sheets. Instead of selling BTC to generate cash, corporate holders can now use the asset to secure financing while maintaining their market exposure.

Two Prime CEO Alexander Blume said the secured bitcoin lending market is becoming increasingly sophisticated. Lenders are now developing longer-term products, bespoke financing arrangements and traditional warehouse lines designed for institutional customers.

Two Prime’s financing for MARA carries a fixed 7.65% interest rate and is scheduled to mature in August 2028. Blume said demand for bitcoin-backed borrowing has increased as institutions look to finance capital expenditures without giving up their BTC positions.

Loan structures are also becoming more comprehensive. Recent filings include provisions governing margin calls, custody of pledged assets and liquidation procedures, as well as a wider selection of loan amounts and maturity dates.

The market is also attracting other established lenders. Blume said Ledn and Kraken have expanded bitcoin-backed credit through mechanisms such as asset-backed securities and warehouse facilities.

The development may eventually extend beyond bitcoin lending as more conventional financial products move onto blockchain networks.

Blume said the capabilities being developed in secured digital-asset lending could become increasingly relevant as the broader financial system adopts onchain infrastructure, including potentially tokenized stocks.

With the number of publicly traded companies holding bitcoin continuing to rise, borrowing against BTC could become an increasingly important part of corporate treasury management. It offers companies a way to raise capital while continuing to maintain exposure to the cryptocurrency.