Signature Bank closure highlights benefits of holding Bitcoin, says Marathon Digital

Bitcoin (BTC) miner Marathon Digital said its funds held at Signature Bank are safe and available for use despite the closure of the bank.

In a March 13  statement, the BTC said $142 million in cash deposits at the bank and has access to the funds for treasury purposes.

Besides that, Marathon said it had no business relationship with the other embattled crypto-friendly bank, Silicon Valley Bank.

Marathon Digital added that it held 11,000 Bitcoin as of March 13. The company added that this provides “financial optionality that extends beyond the traditional banking system.”

Signature Bank was closed on March 12 by the New York Department of Financial Services. The state agency appointed the Federal Deposit Insurance Corporation (FDIC) as the receiver.

The FDIC has since moved all Signature Bank assets and deposits to Signature Bridge Bank, a full-service financial institution that it will operate while seeking potential bidders for the bank. FDIC also stated, “All depositors of this institution will be made whole.”

Following the news, MARA stock rose 18% today to $6.36, according to Yahoo Finance data.

Other firms with exposure to Signature

Stablecoin issuer Paxos said it held $250 million at Signature Bank. The firm added that it has insurance for private deposits over the balance it held at the failed bank.

However, Paxos assured that all its customer deposits would be fully guaranteed and expected to be made available to customers when the banks open.

Coinbase also revealed that it held $240 million with Signature Bank as of March 10. The firm also had assurance that it could recover these funds when the bank opened.

Another stablecoin issuer, True Coin, had $852.27 million at the failed bank. The firm maintained that this would not affect its user’s minting and redemptions of TUSD.

The post Signature Bank closure highlights benefits of holding Bitcoin, says Marathon Digital appeared first on CryptoSlate.


Share on facebook
Share on twitter
Share on pinterest
Share on linkedin

Follow Us

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.
On Key

Related Posts

Finixio Crypto: From Online Marketing to Cryptocurrency Scams?

Cryptocurrency scams have been a constant threat to the industry since its inception. These scams not only drain funds from unsuspecting investors but also contribute to the negative perception of cryptocurrency as a whole. One such company that has been experimenting with online users’ psychology is Finixio crypto. In this article, we will delve into

Binance CFTC Lawsuit Has Enough To Affect Major Crypto Downtrend?

Crypto News: The Commodities Futures Trading Commission (CFTC) lawsuit against crypto exchange Binance changed the narrative in the market, but it remains to be seen if the move still has enough legs to affect a major downtrend in cryptocurrency prices. Although the news of the lawsuit led to significant drop in Bitcoin price, it continues

Miners Dumping Bitcoin To Crypto Exchanges, BTC Price Reversal Below $25K Likely

Bitcoin price fell from $28K to $26.5K after the US CFTC sued crypto exchange Binance and its CEO Changpeng “CZ” Zhao for violating U.S. crypto trading and derivatives regulations. The crypto market considers this move as a continued regulatory crackdown against crypto. With the crypto market already facing liquidity issues, action against Binance will further

XRP Lawyer: After CFTC, SEC Could Sue Binance Over Securities Offerings

Crypto News: The Commodity Futures Trading Commission’s (CFTC) lawsuit on crypto exchange Binance made waves in the market. But the CFTC’s views on crypto classification is becoming a much bigger debate as US regulators continue enforcement actions on crypto businesses. Meanwhile, the crypto market is perceiving this as a fight between the two regulatory agencies,