Marathon Digital Holdings, one of the leading digital asset mining companies, announced yesterday that it has fully repaid the $30 million loan it received from Silvergate Bank in December 2022. 

The loan was secured by BTC pledged as collateral, and Marathon’s prompt repayment has freed up these funds for the company to use as it sees fit, and they used it to repay the $30 million.

Marathon has recently taken steps to reduce its debt obligations through payments or restructurings, following similar actions by other bitcoin miners as the ongoing bear market continues to affect the industry. The company currently holds a total of 12,232 bitcoins, with 7,815 of those being unrestricted and available for sale. 

In December 2022, Marathon mined an additional 475 bitcoins. Before the FTX collapse on November 9, the company held only 1,950 unrestricted bitcoins. While Marathon has suggested that it may sell some of its mined bitcoins in the future, it has not yet done so. 

The company’s shares have recently fallen by 4.1%. As of Sunday, Marathon operated a fleet of 69,000 mining rigs with a computing power of 7 exahashes per second. The company continues to anticipate having 23 exahashes of installed computing power by the middle of 2023.

Silvergate was previously connected to FTX, the defunct crypto exchange. The funding that Silvergate supplied to Marathon was in the form of two separate types of debt securities. The first was a 30-million-dollar revolving credit agreement signed in October 2021 and subsequently paid down to zero by the end of 2022. The second was an agreement for a longer-term loan in the month of August.