Marathon Digital Holdings Confirms Availability of $142 Million in Deposits at Signature Bridge Bank
Marathon Digital Holdings, a leading company in supporting and securing the Bitcoin ecosystem, announced on March 13, 2023, that its deposits held at Signature Bank, New York, NY are secure and available for use. This announcement followed the closure of Signature Bank by its state chartering authority the day before.
In response to the closure, a joint statement was issued by the Department of the Treasury, the Federal Reserve, and the FDIC, indicating that all depositors of Signature Bank would be made whole. The FDIC was appointed as the receiver and transferred all deposits and assets of Signature Bank to Signature Bridge Bank, N.A., which will be operated by the FDIC as it markets the institution to potential bidders.
Marathon confirmed that it had approximately $142 million in cash deposits at Signature Bridge Bank, N.A. and has access to its funds for treasury management purposes. The company is paying all invoices in the normal course of business, and banking activities resumed on March 13, 2023, including online banking. Depositors and borrowers became customers of Signature Bridge Bank, N.A. and will continue to have uninterrupted customer service and access to their funds by ATM, debit cards, and writing checks in the same manner as before.
It is worth noting that Marathon holds over 11,000 bitcoins, which the company believes provides it financial optionality that extends beyond the traditional banking system. The company confirmed that it had no direct business relationship with Silicon Valley Bank.
However, the company reminds investors that investing in its securities involves a high degree of risk. Before making an investment decision, investors should carefully consider the risks, uncertainties, and forward-looking statements described under “Risk Factors” in Item 1A of the company’s most recent Annual Report on Form 10-K.
Overall, Marathon Digital Holdings’ deposits held at Signature Bank, New York, NY are secure and available for use. The company is operating normally and has access to its funds for treasury management purposes. The joint statement issued by the Department of the Treasury, the Federal Reserve, and the FDIC has provided some reassurance to depositors of Signature Bank, and Marathon’s confirmation that it had no direct business relationship with Silicon Valley Bank should alleviate some investor concerns.
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