Marathon says it has repaid Silvergate loan, terminated credit facility

Marathon Digital mentioned that it has repaid a time period mortgage and terminated its credit score amenities with Silvergate Financial institution, in accordance 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 amenities in place final summer season. Gallagher mentioned that, in response to these modifications, the corporate has modified its monetary technique by strengthening its steadiness sheet with higher 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 this moment will, as famous, enhance these quantities considerably.

Finish of deal was deliberate earlier than Silvergate shutdown

Although Silvergate Financial institution introduced right this moment that it’s going to 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 this moment, March 8. Nevertheless, it additionally mentioned it supplied Silvergate with a 30-day discover of its intent to repay the related mortgage and terminate its credit score amenities in February. As such, Marathon seemingly deliberate to finish these agreements lengthy upfront of Silvergate’s failure right this moment.

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

The information coincides with modifications in inventory worth. Marathon (MARA) is up 1.48% right this moment and down 2.10% after hours. Silvergate (SI) is down 5.76% right this moment and down 41.75% after hours.