Marathon says it has repaid Silvergate mortgage, terminated credit score facility

0
84


Marathon Digital mentioned that it has repaid a time period mortgage and terminated its credit score services with Silvergate Financial institution, in accordance with a press launch revealed on March 8.

Marathon reduces debt, strengthens stability sheet

Marathon mentioned 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 mentioned 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 season. Gallagher mentioned that, in response to these modifications, 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 mentioned that it had $410 million of unrestricted property together with money and Bitcoin. The corporate’s resolution in the present day will, as famous, improve these quantities considerably.

Finish of deal was deliberate earlier than Silvergate shutdown

Although Silvergate Financial institution introduced in the present day that it’ll halt its operations, Marathon’s resolution solely seems to be partially associated to that announcement.

Marathon mentioned that it accomplished the time period mortgage prepayment and termination in the present day, March 8. Nonetheless, it additionally mentioned it supplied 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 prematurely of Silvergate’s failure in the present day.

Points that emerged round Silvergate final week — corresponding to inquiries into the firm’s involvement with FTX — have been recognized in earlier months. It’s potential 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% in the present day and down 2.10% after hours. Silvergate (SI) is down 5.76% in the present day and down 41.75% after hours.

LEAVE A REPLY

Please enter your comment!
Please enter your name here