As per Cointelegraph, Marathon Digital has halted its credit facilities with Silvergate Bank. On March 8, 2023, the Bitcoin mining firm announced that it will be terminating its credit facilities with Silvergate Bank. This step is supposed to improve Marathon’s long-term financial plan to develop liquidity.
“Marathon Digital Holdings has repaid its term loan and terminated its credit facilities with Silvergate Bank, reducing Marathon’s debt by $50 million and increasing the Company’s unrestricted bitcoin holdings by 3,132 BTC,” Marathon Digital tweeted.
According to Cointelegraph, questions have been raised on the end of credit facilities between Marathon and Silvergate. In response to that, Charlie Schumacher, vice-president, Marathon Digital, stated the reason behind discontinuing financial ties with Silvergate was “predominantly part of our financial strategy.”
Moreover, Cointelegraph noted that this step will help Marathon to remove debt worth $50 million and bring down its annual borrowing costs by five million dollars.
“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,” Hugh Gallagher, chief financial officer, Marathon Digital, concluded.