Marathon ends its credit facilities with Silvergate, prepays loan

Quick Take

  • Marathon Digital Holdings said it ended its credit facilities with Silvergate Bank, reducing its debt by $50 million.
  • The news comes shortly after Silvergate said it was winding down operations and voluntarily liquidating Silvergate Bank. 

Bitcoin miner Marathon Digital Holdings said it repaid its term loan and ended its credit facilities with liquidating Silvergate Bank, reducing its debt by $50 million.  

“We have been actively building a more robust balance sheet that features increased levels of cash and unrestricted bitcoin holdings,” Hugh Gallagher, Marathon’s chief financial officer on said a statement Wednesday. “Given our current cash position, we determined that it was in the Company’s best interest to prepay our term loan and eliminate both the term loan and (revolving line of credit) facilities.”  

Gallagher added that the company also “freed up” about $75 million in bitcoin.  

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The news comes shortly after Silvergate Capital Corp. announced it was winding down operations and voluntarily liquidating Silvergate Bank.  Coinbase and Paxos, among other companies, have distanced themselves from the bank over the past few days. 

 


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About Author

Sarah is a reporter at The Block covering policy, regulation and legal happenings. Before, Sarah was a reporter with CQ Legal writing about securities regulation, which is where she first started reporting on crypto. Sarah has also written for The Bond Buyer and American Banker, among other finance-related publications. She graduated from the University of Missouri and earned a degree in print and digital journalism. Sarah is based in Washington D.C., and is an avid coffee lover. You can follow her on Twitter @ForTheWynn.

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