Signature Bank closure highlights benefits of holding Bitcoin, says Marathon Digital
Bitcoin (BTC) miner Marathon Digital has said that funds stored in Signature Bank are safe and usable despite the bank’s closure.
March 13th statement, BTC said it has $142 million in cash deposits in banks and can access the funds for financial purposes.
In addition, Marathon said it has no business relationship with another struggling crypto-friendly bank, Silicon Valley Bank.
Marathon Digital added that it held 11,000 bitcoins as of March 13. The company added that this would provide “financial options beyond the traditional banking system.”
Signature Bank was closed March 12 by the New York Department of Financial Services. State agencies have designated the Federal Deposit Insurance Corporation (FDIC) as the beneficiary.
The FDIC subsequently transferred all Signature Bank assets and deposits to Signature Bridge Bank. This bank is a full-service financial institution that operates while seeking potential bidders for the bank. The FDIC also said, “All depositors of this institution will be full.”
Following the news, MARA’s share price rose 18% today to $6.36, according to Yahoo Finance. data.
Other companies with signature exposure
Stablecoin issuer Paxos Said Had $250 million in undersigned banks. The company added that it has insurance against personal deposits in excess of the balances it held at failed banks.
But Paxos feel safe All customer deposits are fully insured and expected to be available to customers when the bank opens.
coinbase too clearly As of March 10, he had $240 million in Signature Bank. The company also had a guarantee that these funds could be recovered when the bank was opened.
Another stablecoin issuer, True Coin, held $852.27 million in failed banks. The company claimed that this would not affect the user’s issuance and redemption of her TUSD.
