Marathon Digital has terminated its credit facilities with Silvergate Bank, with the announcement coming just an hour after the bank said it will be winding down its operations.
and winding down operations “in light of recent industry and regulatory developments.”
In the announcement, Marathon said the move will free up the 3,132 Bitcoin — worth over $68 million at the time of writing — 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. “We 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’s best interest to prepay our term loan and eliminate both the term loan and RLOC facilities.”
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