Despite the closure of Signature Bank by New York regulators on Sunday, Marathon Digital Holdings (MARA), a prominent bitcoin mining company, has confirmed that it retains access to its cash deposits worth USD 142 million at the bank.
Within a week, three banks related to the crypto industry have collapsed, including the closure of Signature Bank by New York regulators, the voluntary liquidation of Silvergate Bank, and the shutdown of Silicon Valley Bank by California and federal regulators.
Marathon has confirmed that it is using its funds for treasury management purposes and settling all invoices as part of its regular business operations. Additionally, it possesses more than 11,000 bitcoin, which gives it financial flexibility beyond the conventional banking system. The miner had been reducing its debt obligations to Silvergate since January and terminated a credit facility last week, lowering its debt by USD 50 million.
MARA, one of the world’s largest bitcoin miners, was up about 9% on early morning trading on the Nasdaq, as bitcoin inched closer to USD 23,000. Despite the bank’s closure, the company’s access to its funds has not been impacted, giving it the financial flexibility it needs to operate its business.