Bitcoin News Today: Institutions Shift to Bitcoin Treasuries, Fueling $827M Loan Surge

Two Prime Lending, the secured lending affiliate of SEC-registered investment advisor Two Prime Inc., reported $827 million in bitcoin-backed loans and credit facilities issued in Q3 2025, marking a record for the firm and bringing its total committed loan volume to $2.55 billion since launching in March 2024 [4]. The growth underscores rising institutional adoption of bitcoin as a collateral asset, with clients including publicly listed miners, hedge funds, and digital asset treasuries. Notable borrowers in the quarter included CleanSpark (NASDAQ: CLSK), Hut 8 (NASDAQ: HUT), Kindly MD (NASDAQ: NAKA), and Fold (NASDAQ: FLD) [5].

The surge in demand reflects a shift among institutional investors from passive bitcoin accumulation to active treasury management. Two Prime CEO Alexander S. Blume emphasized that the firm's strategies prioritize capital preservation, liquidity, and risk-adjusted returns, catering to clients seeking to monetize their bitcoin holdings without liquidating them [5]. Competitive interest rates, flexible terms, and a focus on transparency have positioned Two Prime as one of the largest bitcoin-backed lenders globally, with over $3 billion in lending capacity [5].

The firm's expansion aligns with broader market trends, including increased regulatory clarity and the maturation of digital asset infrastructure. MARA Holdings (NASDAQ: MARA), a leading bitcoin miner, has deepened its partnership with Two Prime, allocating 2,000 BTC to the lender's yield strategies after initially committing 500 BTC earlier in 2025 [1]. MARA's investment and treasury allocation highlight the growing synergy between bitcoin miners and institutional lenders, as companies seek to optimize capital efficiency while maintaining security and flexibility [9].

Two Prime's Q3 performance also follows a $20 million equity investment led by MARA, formalizing the miner's minority ownership in the lender [9]. This collaboration, along with similar initiatives across the industry, signals a strategic pivot toward yield generation in a market where bitcoin's role as a store of value is increasingly complemented by active capital deployment. Analysts note that institutions are now prioritizing solutions that balance risk management with returns, particularly as bitcoin's price volatility and regulatory environment stabilize [10].

The firm's success is further supported by its non-rehypothecated lending model, which segregates client collateral in secured custody to mitigate counterparty risks [5]. This approach has attracted a diverse client base, including family offices, corporate treasuries, and high-net-worth individuals, who seek structured products tailored to their risk profiles. Two Prime's ability to scale its offerings while maintaining operational transparency has distinguished it in a competitive landscape, where demand for bitcoin-secured financing is projected to grow as more institutions integrate digital assets into their portfolios [4].

Source: [1] MARA Holdings Announces Expanded Partnership with Two Prime (https://www.prnewswire.com/news-releases/mara-deploys-500-btc-for-yield-strategy-with-two-prime-302462498.html) [4] Two Prime Announces Q3 2025 as Record Quarter (https://www.coindesk.com/markets/2025/10/08/two-prime-hits-record-usd827-million-in-q3-bitcoin-backed-loans) [5] Two Prime Lending Limited Reports $827M in Q3 Loans (https://markets.financialcontent.com/medicinehatnews/article/bizwire-2025-10-9-two-prime-announces-q3-2025-as-record-quarter-for-total-committed-loan-volume-at-827-million-255-billion-in-total-loans-since-march-2024) [9] MARA Leads $20M Investment in Two Prime (https://ir.mara.com/news-events/press-releases/detail/1400/mara-leads-20-million-investment-in-two-prime-to-advance-institutional-bitcoin-yield-strategies-and-expands-sma-to-2000-btc) [10] Institutional Adoption of Digital Asset Yield Strategies (https://www.ledgerinsights.com/institutional-adoption-of-digital-asset-yield-strategies-in-a-new-era-of-regulatory-clarity/)