Bitcoin News Today: Institutions Leverage Bitcoin for Yield, Propelling Two Prime's $827M Loan Boom

Two Prime Lending has reported record-breaking performance in Q3 2025, issuing $827 million in bitcoin-backed loans, bringing its total committed loan volume to $2.55 billion since its launch in March 2024Coindesk^[1]. The firm, a secured lending affiliate of Two Prime Inc., attributes its growth to competitive interest rates and tailored solutions for institutions seeking yield and risk managementFinancialContent^[2]. Clients include major firms such as CleanSpark (NASDAQ: CLSK), Hut 8 (NASDAQ: HUT), Kindly MD (NAKA), and Fold (NASDAQ: FLD), reflecting growing institutional adoption of bitcoin-backed financingCoindesk^[1].

The surge in demand aligns with broader trends in corporate and sovereign bitcoin treasury strategies. For instance, MARA Holdings (NASDAQ: MARA) led a $20 million equity investment in Two Prime in July 2025, expanding its BTC allocation to 2,000 BTC for yield generationBusinessWire^[3]. MARA's CEO, Salman Khan, emphasized the shift toward "active, yield-focused bitcoin strategies," highlighting the firm's alignment with institutional-grade risk management and transparencyBusinessWire^[3]. Similarly, Galaxy Research's Q1 2025 report ranked Two Prime Lending as the largest centralized finance (CeFi) lender in the U.S., underscoring its market leadershipFinancialContent^[2].

Institutional demand for bitcoin-backed loans has been further fueled by the asset's integration into corporate balance sheets. Over 100 publicly listed companies now hold approximately 1 million BTC collectively, with firms like CleanSpark leveraging their treasury to secure financing for expansionTheMinerMag^[5]. CleanSpark recently secured a $100 million bitcoin-backed revolving credit facility with Two Prime, adding to its $300 million facility with Coinbase PrimeTheMinerMag^[5]. The loan carries an interest rate of Term SOFR plus 3.55%, with risk mitigation clauses tied to collateral thresholdsTheMinerMag^[5].

Two Prime's success is also tied to its non-rehypothecation model, where collateral is held in segregated, bankruptcy-remote custody. This approach contrasts with earlier crypto lending failures and has attracted entities seeking secure, transparent infrastructureFinancialContent^[2]. CEO Alexander S. Blume noted that institutions, including miners, hedge funds, and sovereign wealth funds, are increasingly deploying bitcoin for yield generation through structured lending and derivatives strategiesCoindesk^[1]. The firm's $3 billion lending capacity and focus on tri-party custody further differentiate it in a competitive marketFinancialContent^[2].

The growth of bitcoin-backed lending reflects broader shifts in asset management. Global crypto-backed loan markets now exceed $39 billion, with platforms like Aave and Coinbase offering liquidity solutions. Traditional financial institutions, including JPMorgan and Block Earner, are also exploring BTC as collateral for mortgages and corporate loans. Despite volatility risks, institutional adoption of bitcoin as a treasury asset-exemplified by firms like MARA and MicroStrategy-has normalized its role in capital deploymentCoindesk^[1].

As Two Prime scales its offerings, it faces challenges such as regulatory clarity and market liquidity. However, its partnerships with regulated custodians and emphasis on operational transparency position it to capitalize on the expanding institutional demandBusinessWire^[3]. With bitcoin's price surpassing $111,000 in 2025 and spot ETF inflows exceeding $54.4 billion since 2024Coingecko^[4], the firm's growth trajectory underscores bitcoin's maturation as a core asset in institutional portfolios.