Crypto mining firm Marathon Digital Holdings has assured investors that the firm’s cash deposits at Signature Bank are secure and available for use as of Mar. 13.
In a statement following the closure of New York’s Signature Bank, Marathon disclosed that it has approximately $142 million in cash deposits at Signature Bridge Bank.
The Signature Bridge Bank was set up by the United States Federal Deposit Insurance Corporation (FDIC) to manage customer accounts at the recently shut-down Signature Bank. The bridge bank is aimed at ensuring the flow of funds is not interrupted while the regulator searches for a buyer to acquire the assets 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 also confirmed that it has access to its funds for treasury management purposes, and is conducting its usual business transactions and paying all invoices as usual. Moreover, Marathon still holds over 11,000 Bitcoin (BTC), which the company 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 Mar. 10.
Signature Bank, a crypto-friendly bank based in New York closed down on Mar. 12 and was taken over by the New York Department of Financial Services (NYDFS).
@federalreserve @USTreasury @FDICgov issue statement on actions to protect the U.S. economy by strengthening public confidence in our banking system, ensuring depositors’ savings remain safe: https://t.co/YISeTdFPrO
– Federal Reserve (@federalreserve) March 12, 2023
The Federal Reserve, in a statement released on Mar. 12, explained 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.
Related: Gemini says no funds at Signature Bank backing GUSD
Former U.S. Representative and Signature Bank board member Barney Frank has since suggested that the closure of Signature Bank by New York regulators was part of an anti-crypto message, a Mar. 13 CNBC report revealed.
According to Frank, 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.
Signature Bank’s shut down by New York regulators makes it the third bank with ties to crypto to collapse in a week. Frank said regulators may have wanted to show an anti-crypto message, and claims that Signature and Silvergate Bank was solvent at the time.