Signature Bank Closure Highlights Benefits of Holding Bitcoin, Marathon Digital Says
Bitcoin (BTC) miner Marathon Digital said the funds held at Signature Bank are safe and available for use despite the closure of the bank.
In a statement on March 13, BTC said $142 million in cash deposits in the bank and has access to the funds for treasury purposes.
Beyond that, Marathon said it had no business relationship with the other controversial crypto-friendly bank, Silicon Valley Bank.
Marathon Digital added that they had 11,000 Bitcoin as of March 13. The company added that this provides “financial freedom of choice that extends beyond the traditional banking system.”
Signature Bank was shut down on March 12 by the New York Department of Financial Services. The state agency appointed the Federal Deposit Insurance Corporation (FDIC) as 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 it searches for potential bidders for the bank. The FDIC also stated, “All depositors of this institution will be made whole.”
Following the news, MARA shares rose 18% today to $6.36, according to Yahoo Finance data.
Other firms with exposure to Signatur
Stablecoin issuer Paxos so it had $250 million in Signature Bank. The firm added that it has insurance for private deposits beyond the balance it held at the failed bank.
However, Paxos insured that all its customer deposits will be fully guaranteed and expected to be made available to customers when the banks open.
Coinbase too revealed that it had $240 million with Signature Bank as of March 10. The firm also had assurances that it could get these funds back when the bank opened.
Another stablecoin issuer, True Coin, had $852.27 million in the failed bank. The firm claimed that this would not affect the user’s minting and redemption of TUSD.
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