Marathon Digital Holdings Terminates Silvergate Credit Facilities, Increases Bitcoin Holdings

Marathon Digital Holdings Inc. MARA terminated its credit facilities and repaid its term loan with Silvergate Captial Corp SI, resulting in a debt reduction of $50 million and an increase in unrestricted Bitcoin BTC/USD 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.

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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.

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