{"id":561281,"date":"2023-03-09T04:25:39","date_gmt":"2023-03-09T01:25:39","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/marathon-digital-terminates-credit-facilities-with-silvergate-bank\/"},"modified":"2023-03-09T04:25:39","modified_gmt":"2023-03-09T01:25:39","slug":"marathon-digital-terminates-credit-facilities-with-silvergate-bank","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/marathon-digital-terminates-credit-facilities-with-silvergate-bank\/","title":{"rendered":"# Marathon Digital terminates credit facilities with Silvergate Bank"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2f911bce4cd\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2f911bce4cd\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/marathon-digital-terminates-credit-facilities-with-silvergate-bank\/#%E2%80%9D_Marathon_Digital_terminates_credit_facilities_with_Silvergate_Bank_%E2%80%9C\" >&#8221; Marathon Digital terminates credit facilities with Silvergate Bank &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Marathon_Digital_terminates_credit_facilities_with_Silvergate_Bank_%E2%80%9C\"><\/span>&#8221; Marathon Digital terminates credit facilities with Silvergate Bank &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDMvZmY2YzA3NzctZTA4MS00MzExLWJiZDgtYjZmNGE2ZjlhYzQyLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-48054ca8>Bitcoin mining firm Marathon Digital has paid off its term loan and terminated its credit facilities with crypto-friendly Silvergate Bank, just as the bank announced it will be winding down operations.<\/p>\n<p>Marathon <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.globenewswire.com\/news-release\/2023\/03\/08\/2623572\/0\/en\/Marathon-Digital-Holdings-Prepays-Term-Loan-in-Whole-and-Terminates-Credit-Facilities.html\">announced<\/a> on Mar. 8 that it had prepaid its outstanding loan balance earlier that day, and would be terminating the revolving line of credit facility between the firms after providing Silvergate Bank with the required 30-day notice in early February.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Marathon Digital Holdings has repaid its term loan and terminated its credit facilities with Silvergate Bank, reducing Marathon\u2019s debt by $50 million and increasing the Company\u2019s unrestricted bitcoin holdings by 3,132 BTC. Read our full update here: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/tihTTagfhR\">https:\/\/t.co\/tihTTagfhR<\/a><\/p>\n<p>\u2014 Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/MarathonDH\/status\/1633594697775185921?ref_src=twsrc%5Etfw\">March 8, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>The announcement from Marathon came less than an hour after Silvergate Bank\u2019s holding company \u2014 Silvergate Capital Corporation \u2014 announced it would be voluntarily liquidating the bank and winding down operations \u201cin light of recent industry and regulatory developments.\u201d<\/p>\n<p>Cointelegraph reached out to Marathon Digital to understand whether the timing of the announcement had anything to do with the bank&#8217;s most recent development, but did not receive a response by the time of publication.\u00a0<\/p>\n<p>In the announcement, Marathon said the move will free up the 3,132 Bitcoin (BTC) \u2014 worth over $68 million at the time of writing \u2014 held as collateral for the loan. This would eliminate $50 million worth of debt and reduce its annual borrowing costs by $5 million, it said.\u00a0<\/p>\n<p>Marathon\u2019s chief financial officer Hugh Gallagher noted that the crypto \u201cindustry has significantly changed\u201d since the firm had opened the lending facilities with Silvergate Bank last summer, adding: <\/p>\n<blockquote><p>\u201cWe have been actively building a more robust balance sheet that features increased levels of cash and unrestricted bitcoin holdings. Given our current cash position, we determined that it was in the Company\u2019s best interest to prepay our term loan and eliminate both the term loan and RLOC facilities.\u201d<\/p><\/blockquote>\n<p>According to a prior filing, Marathon secured the $100 million revolving credit facility with Silvergate Bank in October, 2021 and intended to use it to purchase Bitcoin mining equipment and fund its mining operations.<\/p>\n<p><strong>Related: <\/strong><strong><em>Impact of the Silvergate collapse on crypto \u2014 Watch The Market Report live<\/em><\/strong><\/p>\n<p>Last month, Marathon\u2019s vice president of corporate communications Charlie Schumacher suggested the firm is looking to build a \u201cwar chest\u201d of liquidity, composed of both cash and Bitcoin, and is looking to continue paying down debt whilst increasing its cash positions.<\/p>\n<p>The comments came on Feb. 3, following reports that the firm had sold Bitcoin for the first time since 2020.<\/p>\n<p>Marathon is the second-biggest publicly listed holder of Bitcoin <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coingecko.com\/en\/public-companies-bitcoin\">according<\/a> to CoinGecko, beaten only by software analytics company MicroStrategy.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/marathon-digital-terminates-credit-facilities-with-silvergate-bank\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Marathon Digital terminates credit facilities with Silvergate Bank &#8220; Bitcoin mining firm Marathon Digital has paid off its term loan and terminated its credit facilities with crypto-friendly Silvergate Bank, just as the bank announced it will be winding down operations. Marathon announced on Mar. 8 that it had prepaid its outstanding loan balance earlier&#8230;<\/p>\n","protected":false},"author":1,"featured_media":561282,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/ff6c0777-e081-4311-bbd8-b6f4a6f9ac42.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74989,107545,75042,96725,71939,117,73808,67874],"class_list":["post-561281","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-mining","tag-liquidity","tag-mining","tag-press-release","tag-banks","tag-business","tag-loans","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/561281","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=561281"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/561281\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/561282"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=561281"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=561281"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=561281"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}