• Marathon Digital, a Bitcoin miner, said their funds held at Signature Bank are safe and available for use after the bank closure.
• Marathon Digital holds 11,000 Bitcoin which provides it „financial optionality that extends beyond the traditional banking system.“
• Other firms like Paxos, Coinbase and True Coin also had exposure to Signature Bank and affirmed that their customer deposits would be fully guaranteed.
Signature Bank Closure
On March 12th, the New York Department of Financial Services closed Signature Bank. The Federal Deposit Insurance Corporation (FDIC) was appointed as the receiver and all assets and deposits were moved to Signature Bridge Bank. FDIC stated that all depositors would be made whole.
Marathon Digital Response
Bitcoin miner Marathon Digital stated that $142 million of cash deposits were held at Signature Bank but are still accessible for treasury purposes. Additionally, Marathon has 11,000 Bitcoin holdings which provide them financial optionality outside of traditional banking systems. As a result of this news MARA stock rose 18% today to $6.36 according to Yahoo Finance data.
Other Firms Exposure
Stablecoin issuer Paxos had $250 million at Signature Bank but assured customers that all deposits would be fully guaranteed when banks open again. Coinbase also revealed they held $240 million with the failed bank but could recover these funds when the bank opened back up again. Lastly, True Coin had $852.27 million deposited which will not affect its user’s minting and redemptions of TUSD when banks reopen.
Overall, despite the closure of Signature Bank there is assurance from both Marathon Digital as well as other firms who had exposure to it that customer deposits will be made whole in due time when banks open again soon enough.
The takeaway from this news is that cryptocurrency miners like Marathon have access to digital financial options outside of traditional banking systems which can help protect funds in case of a bank failure such as this one with Signature Bank