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Marathon Digital stated that it has repaid a time period mortgage and terminated its credit score amenities with Silvergate Financial institution, based on a press launch revealed on March 8.
Marathon reduces debt, strengthens stability sheet
Marathon stated that this resolution will scale back its debt by $50 million and improve its unrestricted Bitcoin holdings by a further 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 amenities in place final summer time. Gallagher stated that, in response to these modifications, the corporate has modified its monetary technique by strengthening its stability sheet with better 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 belongings together with money and Bitcoin. The corporate’s resolution as we speak will, as famous, improve these quantities considerably.
Finish of deal was deliberate earlier than Silvergate shutdown
Although Silvergate Financial institution introduced as we speak that it’ll halt its operations, Marathon’s resolution solely seems to be partially associated to that announcement.
Marathon stated that it accomplished the time period mortgage prepayment and termination as we speak, March 8. Nonetheless, it additionally stated it supplied Silvergate with a 30-day discover of its intent to repay the related mortgage and terminate its credit score amenities in February. As such, Marathon seemingly deliberate to finish these agreements lengthy prematurely of Silvergate’s failure as we speak.
Points that emerged round Silvergate final week — similar to inquiries into the corporate’s involvement with FTX — have been identified in earlier months. It’s attainable that these and different developments influenced Marathon within the time main as much as the present disaster.
The information coincides with modifications in inventory worth. Marathon (MARA) is up 1.48% as we speak and down 2.10% after hours. Silvergate (SI) is down 5.76% as we speak and down 41.75% after hours.
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