Coinbase Extends $100M Bitcoin-Backed Credit Line to CleanSpark
Coinbase has extended a $100 million Bitcoin-backed credit line to Bitcoin miner CleanSpark. The Bitcoin-backed credit line is secured by Bitcoin collateral and allows borrowing up to 5,000 BTC at 75% loan-to-value, with a 4% annual interest rate and a 2% facility fee.
CleanSpark will use the Bitcoin loan facility to expand energy assets, increase mining capacity and invest in high-performance computing operations without selling BTC or issuing new shares. This non-dilutive financing strengthens the company’s balance sheet and supports operations amid market headwinds. The deal highlights Coinbase Prime’s growing institutional lending arm and robust demand for crypto-secured financing. It may improve Bitcoin liquidity and deepen capital ties between exchanges and miners.
Bullish
The extension of a $100 million Bitcoin-backed credit line to CleanSpark is bullish for BTC. It demonstrates growing institutional confidence and demand for crypto-secured financing, which may drive additional Bitcoin usage as collateral. By enabling CleanSpark to expand mining capacity without selling holdings, the deal supports long-term network security and liquidity. In the short term, increased demand for collateralized loans can raise buying pressure on BTC. Over the long term, improved institutional lending frameworks may enhance market depth and stability, reinforcing upward price momentum.