Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Marathon Digital Holdings Terminates Silvergate Credit Facilities, Increases Bitcoin Holdings

Published 09/03/2023, 21:29
Updated 09/03/2023, 22:40
© Reuters Marathon Digital Holdings Terminates Silvergate Credit Facilities, Increases Bitcoin Holdings
BTC/EUR
-
BTC/USD
-
BTC/EUR
-
BTC/JPY
-
BTC/USD
-
BTC/JPY
-
BTC/GBP
-
BTC/GBP
-
PDPR
-

Benzinga - Marathon Digital Holdings Inc. (NASDAQ: MARA) terminated its credit facilities and repaid its term loan with Silvergate Captial Corp (NYSE: SI), resulting in a debt reduction of $50 million and an increase in unrestricted Bitcoin (CRYPTO: BTC) holdings by 3,132.

The company provided Silvergate Bank with the required 30-day notice in February, stating its intent to prepay the outstanding balance on its term loan facility and terminate the term loan facility, according to a press release issued on Thursday.

The company and Silvergate subsequently agreed to also terminate the revolving line of credit facility.

The term loan prepayment was completed on March 8 and the company's facilities with Silvergate were terminated.

Also Read: Crypto Fallout Claims Another Banking Victim: How The Industry Is Reacting

According to Marathon CFO Hugh Gallagher, the decision was made due to the significant changes in the industry since the facilities were put in place last summer.

Gallagher stated, "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."

The termination of these facilities has resulted in a reduction in leverage by approximately $50 million and an immediate release of approximately $75 million in Bitcoin that was being held as collateral for the term loan.

The termination also reduced the company's annual cash interest costs and facility fees by approximately $5 million.

See Next: Revolutionizing Web3 Game Industry With Lionel Messi: How Matchday's $21M Funding Round Will Change The Game Forever

Photo: Shutterstock

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.