Advert Marathon Digital stated that it has repaid a time period mortgage and terminated its credit score amenities with Silvergate Financial institution, in response to a press launch revealed on March 8.Marathon reduces debt, strengthens steadiness sheetMarathon stated that this choice will scale back its debt by $50 million and enhance 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 amenities in place final summer season. Gallagher stated that, in response to these modifications, the corporate has modified its monetary technique by strengthening its steadiness 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 choice right now will, as famous, enhance these quantities considerably.Finish of deal was deliberate earlier than Silvergate shutdownThough Silvergate Financial institution introduced right now that it’ll halt its operations, Marathon’s choice solely seems to be partially associated to that announcement.Marathon stated that it accomplished the time period mortgage prepayment and termination right now, March 8. Nevertheless, it additionally stated it offered 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 right now.Points that emerged round Silvergate final week — akin to inquiries into the corporate’s involvement with FTX — have been identified 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% right now and down 2.10% after hours. Silvergate (SI) is down 5.76% right now and down 41.75% after hours.
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