Bitcoin News - CryptoNewOne News

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

March 13, 2023 - By 


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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