Marathon ends its credit facilities with Silvergate, prepays loan
TL;DR Marathon Digital Holdings, a bitcoin mining firm, announced that it has paid off its term loan and ended its credit facilities with liquidating Silvergate Bank. This move has reduced the company’s debt by $50 million and freed up $75 million in bitcoin.
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.
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.