Marathon Digital closed its credits at SilvergateOn March 8, the company completed an early loan repayment, reducing its debt by $50 million, the statement said. The repaid debt also increased the company's bitcoin holdings by 3,132, as the cryptocurrency was held as collateral. The collateral has now been repaid.
"We are actively building a more robust balance sheet with more fiat and unlimited BTC. Given the current environment, we have decided that early repayment of the loan and a waiver of the line of credit is in the best interest of the firm," said Marathon Digital CFO Hugh Gallagher.
As a reminder, Silvergate previously announced the start of its liquidation process. The plan includes a full repayment of all deposits, after which the bank will be shut down. After Silvergate reported uncertainty about the viability of its business, many cryptocurrency exchanges and companies, such as Coinbase, Paxos, Circle and Gemini, began refusing to work with the bank.
In February, Marathon Digital reported the sale of 1,500 BTC. This is the first BTC sale in two years. Marathon Digital CEO Fred Thiel said the decision to sell bitcoins was not related to any company issues, but was made to grow the business and support business operations.
