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Marathon Digital mentioned that it has repaid a time period mortgage and terminated its credit score services with Silvergate Financial institution, based on a press launch printed on March 8.
Marathon reduces debt, strengthens stability sheet
Marathon mentioned that this choice will scale back its debt by $50 million and improve its unrestricted Bitcoin holdings by an extra 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 business has “considerably modified” since Marathon put these services in place final summer season. Gallagher mentioned 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 printed its February operations report on March 2. At the moment, it mentioned that it had $410 million of unrestricted belongings together with money and Bitcoin. The corporate’s choice immediately will, as famous, improve these quantities considerably.
Finish of deal was deliberate earlier than Silvergate shutdown
Although Silvergate Financial institution introduced immediately that it’ll halt its operations, Marathon’s choice solely seems to be partially associated to that announcement.
Marathon mentioned that it accomplished the time period mortgage prepayment and termination immediately, March 8. Nevertheless, 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 upfront of Silvergate’s failure immediately.
Points that emerged round Silvergate final week — equivalent to inquiries into the corporate’s involvement with FTX — had been recognized 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 adjustments in inventory worth. Marathon (MARA) is up 1.48% immediately and down 2.10% after hours. Silvergate (SI) is down 5.76% immediately and down 41.75% after hours.
