Hotest Blockchain News in First Media Index

Bitcoin Miner Marathon Digital Terminates Credit Facility With Crypto Bank Silvergate

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.
Secure Your Seat

One of the largest bitcoin miners, Marathon Digital (MARA), said it terminated its credit facilities with Silvergate Bank, which said Wednesday it will wind down operations and liquidate its assets.

Marathon said that on March 8, the term loan prepayment was completed, and the company’s credit facilities with Silvergate Bank were terminated, reducing its debt by $50 million, according to a statement. The debt paydown also increased its unrestricted bitcoin holdings by 3,132 as the bitcoin that was being held as collateral by a third-party custodian, were returned to the miner, the statement said.

"We have reduced our leverage by approximately $50 million, immediately freed up approximately $75 million in bitcoin that was being held as collateral for the term loan, and reduced our annual cash interest costs and facility fees by approximately $5 million," said Hugh Gallagher, Marathon’s CFO in the statement.

The company has been taking steps to shore up its balance sheet by paying off some of its debts and freeing up its restricted bitcoins that were being used as collateral. In January, Marathon said that it fully paid off $30 million in revolver loans with Silvergate in December, freeing up 3,615 bitcoins () that had been pledged as collateral.

The company also sold 650 bitcoin in February, following its sale of 1,500 bitcoin in January, to pay for operating expenses and general corporate purposes. In after hours trading on Wednesday, Marathon shares were down about 1%, in line with bitcoin's decline.

View All Prices
Sign up for The Node, our daily newsletter bringing you the biggest crypto news and ideas.
By signing up, you will receive emails about CoinDesk product updates, events and marketing and you agree to our terms of servicesprivacy policy.


Please note that our privacy policyterms of usecookiesdo not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets


Hotest Cryptocurrency News

End of content

No more pages to load

Next page