Marathon Digital, the famous Bitcoin mining firm, has recently paid its term loan in full and canceled the credit services with Silvergate Bank. This took place at the same time the crypto-friendly bank also decreed that it would be closing shop on its operations. The mining firm announced on the 8th of March that it had already paid its outstanding balance on loan on that day and claimed that it would be terminating its revolving line of credit facility between the two companies. This took place after the company provided the bank with the 30-day notice back in February.
Marathon Digital Has Canceled Its Collaboration With Silvergate Bank
This announcement from Marathon Digital came just an hour after Silvergate Capital corporation- the holding company of Silvergate Bank- had announced that it would be liquidating the bank voluntarily- as well as winding down the operations. The Bank also stated that it had to take this step in light of the recent regulatory developments in the industry.
Charlie Schumacher, the Vice President of Corporate Communications, sent out a mail where he stated that the decision to let go of Silvergate was a massive part of their financial strategy. In the announcement, Marathon also claims that the move to get away from Silvergate will free up around 3,132 Bitcoin- worth around $68 million- which has been held as collateral.
Hugh Gallagher, the chief financial officer of Marathon Digital, also noted that there had been significant changes taking place in the crypto industry- ever since the firm had collaborated with Silvergate the previous summer. He further added that the company had been creating a stronger balance sheet that would feature increased levels of available Bitcoin holdings and cash.
