Business
Marathon Digital Holdings Prepays Term Loan in Whole and Terminates Credit Facilities
Prepayment Reduces Debt by $50 Million and Increases Unrestricted Bitcoin Holdings by 3,132 BTC FORT LAUDERDALE, Fla., March 08, 2023 (GLOBE NEWSWIRE) --
About this update from Mara Holdings, Inc.
[{"type":"text","content":"Prepayment Reduces Debt by $50 Million and Increases Unrestricted Bitcoin Holdings by 3,132 BTC\nFORT LAUDERDALE, Fla., March 08, 2023 (GLOBE NEWSWIRE) -- Marathon Digital Holdings, Inc. (NASDAQ:MARA) (\"Marathon\" or \"Company\"), a leader in supporting and securing the Bitcoin ecosystem, has repaid its term loan and terminated its credit facilities with Silvergate Bank, reducing Marathon’s debt by $50 million and increasing the Company’s unrestricted bitcoin holdings by 3,132 BTC. In early February 2023, Marathon provided Silvergate Bank with the required 30-day notice stating the Company’s intent to prepay the outstanding balance on its term loan facility as well as the Company’s intent to terminate the term loan facility. The Company and Silvergate Bank subsequently agreed to also terminate the revolving line of credit (“RLOC”) facility, which had no borrowings outstanding on the date of termination. On March 8, 2023, the term loan prepayment was completed, and the Company’s facilities with Silvergate Bank were terminated. As a result, Marathon has reduced its debt by $50 million and has increased its unrestricted bitcoin holdings by 3,132 BTC as the bitcoin that was being held as collateral by a third-party custodian were returned to the Company. “Our industry has significantly changed since we put these facilities in place last summer, and we have been adapting our financial strategy accordingly,” said Hugh Gallagher, Marathon’s chief financial officer. “We have been actively building a more robust balance sheet that features increased levels of cash and unrestricted bitcoin holdings. Given our current cash position, we determined that it was in the Company’s best interest to prepay our term loan and eliminate both the term loan and RLOC facilities. As a result, we have reduced our leverage by approximately $50 million, immediately freed up approximately $75 million in bitcoin that was being held as collateral for the term loan, and reduced our annual cash interest costs and facility fees by approximately $5 million.” Investor Notice Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under \"Risk Factors\" in Item 1A of our most recent Annual Report on Form 10-K for the fiscal year ...