Marathon Digital Holdings assures investors over cash deposits
Crypto mining firm Marathon Digital Holdings has reassured its investors that its cash deposits at Signature Bank are secure and available for use.
The company disclosed that it has approximately $142 million in cash deposits at Signature Bridge Bank, which was set up by the FDIC after the shutdown of Signature Bank.
Marathon Digital Holdings' deposits that were held at Signature Bank, New York, NY are secure and available for use as of Monday, March 13, 2023. Read the full update here: https://t.co/H5R6wpmB7Q
— Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) March 13, 2023
Marathon still holds over 11,000 Bitcoin
Marathon also confirmed that it has access to its funds for treasury management purposes. It conducts business transactions and pays all invoices as usual.
Moreover, the company still holds over 11,000 Bitcoin, which it views as a financial asset that provides flexibility beyond the conventional banking system. The company also clarified that it has no direct business ties with Silicon Valley Bank, which shut down on March 10.
Signature Bank shut down
Signature Bank, a crypto-friendly bank based in New York, was closed down on March 12 and overtaken by the New York Department of Financial Services.
The Federal Reserve said on March 12 that the decision to close the bank was made in collaboration with the FDIC to protect the U.S. economy and bolster public confidence in the banking system.
The collapse of three banks with ties to crypto
Signature Bank’s shutdown makes it the third bank with ties to crypto to collapse in a week, following the closure of Silicon Valley Bank and Silvergate.
According to former U.S. Representative and Signature Bank board member Barney Frank, the bank was closed to send an anti-crypto message. However, there was no indication of problems at the bank beyond a deposit run of over $10 billion, which he attributed to contagion from the fallout of Silicon Valley Bank.