Marathon says it has repaid Silvergate mortgage, terminated credit score facility

Marathon Digital mentioned that it has repaid a time period mortgage and terminated its credit score services with Silvergate Financial institution, in line with a press launch printed on March 8.

Marathon reduces debt, strengthens steadiness sheet

Marathon mentioned that this choice will cut back its debt by $50 million and enhance its unrestricted Bitcoin holdings by an extra 3,132 BTC.

The crypto mining agency mentioned 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 business has “considerably modified” since Marathon put these services in place final summer season. Gallagher mentioned that, in response to these adjustments, the corporate has modified its monetary technique by strengthening its steadiness sheet with larger quantities of money and unrestricted Bitcoin holdings.

Marathon printed its February operations report on March 2. At the moment, it mentioned 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 shutdown

Although 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 mentioned that it accomplished the time period mortgage prepayment and termination right now, March 8. Nevertheless, it additionally mentioned it offered Silvergate with a 30-day discover of its intent to repay the related mortgage and terminate its credit score services in February. As such, Marathon seemingly deliberate to finish these agreements lengthy upfront of Silvergate’s failure right now.

Points that emerged round Silvergate final week — akin to inquiries into the company’s involvement with FTX — have been recognized in earlier months. It’s doable that these and different developments influenced Marathon within the time main as much as the present disaster.

The information coincides with adjustments 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.