Marathon Digital Holdings Repays $50 Million in Debt and Increases Bitcoin Reserves by 3,132 BTC

Marathon Digital Holdings, a leader in supporting and securing the Bitcoin ecosystem, has announced that it has repaid its term loan and terminated its credit facilities with Silvergate Bank, reducing its debt by $50 million and increasing its unrestricted bitcoin holdings by 3,132 BTC.

The move was made after the company provided Silvergate Bank with a 30-day notice stating its intent to prepay the outstanding balance on its term loan facility as well as the intent to terminate the term loan facility.

The termination of Marathon’s facilities with Silvergate Bank means that the bitcoin that was being held as collateral by a third-party custodian was returned to the company. This has resulted in Marathon reducing its leverage by approximately $50 million, freeing up approximately $75 million in bitcoin that was being held as collateral for the term loan, and reducing its annual cash interest costs and facility fees by approximately $5 million.

Marathon’s Chief Financial Officer, Hugh Gallagher, commented on the move, stating that the company has been adapting its financial strategy to build a more robust balance sheet that features increased levels of cash and unrestricted bitcoin holdings. He also added that given the company’s current cash position, they determined that it was in the company’s best interest to prepay the term loan and eliminate both the term loan and RLOC facilities.

Marathon’s move to reduce its debt and increase its bitcoin holdings shows its confidence in the future of Bitcoin and its long-term strategy. However, investing in Marathon’s securities involves a high degree of risk, and investors are advised to consider the risks, uncertainties, and forward-looking statements before making an investment decision.

Marathon Digital Holdings is a digital asset technology company that focuses on supporting and securing the Bitcoin ecosystem. The company is currently in the process of becoming one of the largest and most sustainably powered Bitcoin mining operations in North America.

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