Signature Bank closure highlights benefits of holding Bitcoin, says Marathon Digital Signature Bank closure highlights benefits of holding Bitcoin, says Marathon Digital
Marathon said its 11,000 BTC holdings provided it "financial optionality that extends beyond the traditional banking system."
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Updated: Mar. 13, 2023 at 6:48 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
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.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Marathon Digital
Marathon Digital Holdings is a digital asset technology company that mines cryptocurrencies with a focus on the blockchain ecosystem and the generation of digital assets.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Paxos
Paxos Trust Company, LLC is a regulated blockchain infrastructure company building transparent and transformative financial solutions.