Marathon Digital stated that it has repaid a time period mortgage and terminated its credit score services with Silvergate Financial institution, in line with a press launch revealed on March 8.
Marathon reduces debt, strengthens stability sheet
Marathon stated that this determination will cut back its debt by $50 million and improve its unrestricted Bitcoin holdings by an extra 3,132 BTC.
The crypto mining agency stated that the credit score facility was a revolving line of credit score (RLOC) that didn’t have any excellent borrowings on the date of termination.
Marathon CFO Hugh Gallagher famous that the crypto trade has “considerably modified” since Marathon put these services in place final summer time. Gallagher stated that, in response to these adjustments, the corporate has modified its monetary technique by strengthening its stability sheet with higher quantities of money and unrestricted Bitcoin holdings.
Marathon revealed its February operations report on March 2. At the moment, it stated that it had $410 million of unrestricted property together with money and Bitcoin. The corporate’s determination at present will, as famous, improve these quantities considerably.
Finish of deal was deliberate earlier than Silvergate shutdown
Although Silvergate Financial institution introduced at present that it’s going to halt its operations, Marathon’s determination solely seems to be partially associated to that announcement.
Marathon stated that it accomplished the time period mortgage prepayment and termination at present, March 8. Nonetheless, it additionally stated it offered Silvergate with a 30-day discover of its intent to repay the related mortgage and terminate its credit score services in February. As such, Marathon seemingly deliberate to finish these agreements lengthy upfront of Silvergate’s failure at present.
Points that emerged round Silvergate final week — reminiscent of inquiries into the firm’s involvement with FTX — have been recognized in earlier months. It’s doable that these and different developments influenced Marathon within the time main as much as the present disaster.
The information coincides with adjustments in inventory worth. Marathon (MARA) is up 1.48% at present and down 2.10% after hours. Silvergate (SI) is down 5.76% at present and down 41.75% after hours.
