With the demise of the Signature Bank, several major cryptocurrency firms have revealed that they are exposed to financial institutions.
For cryptocurrency firms having their funds stuck at a firm, means having the reserves backing the funds of the clients, stuck on the platform.
Therefore, if any firm has its funds stuck in a bank, it means that it is at risk of losing them if the bank goes bankrupt or shuts down.
Right after the demise of the Signature Bank, several firms from the crypto industry have opened up about having their funds exposed to the entity.
Signature Bank’s Demise
According to the officials, Signature was the third largest bank known for dealing with crypto firms. It had been connected with several firms from the cryptocurrency industry.
However, Signature Bank ended up taking a fall as the regulators took it down. Prior to the Signature Bank, it was the Silicon Valley Bank that was taken down by the US FDIC.
It was the NY regulators who took down the SVB at the order of the FDIC. Even before the SVB, it was the Silvergate Bank that had announced its liquidation.
Marathon Digital Holdings Confirmed its Exposure
Just like many more firms from the crypto industry, Marathon Digital Holdings (MARA) announced that its reserves were exposed at the Signature Bank.
As per them, the Bitcoin mining firm, Signature Bank had $142 million worth of their funds. These funds were present at the bank in the form of cash deposits.
It was on Sunday when the Signature Bank had been cracked down by the regulators based in New York. They proceeded with the shutdown of the Signature Bank and that caused a major demise for the entire crypto industry.
The entire MARA community was concerned just as the firm announced having such a large amount of funds being stuck at the bank.
Marathon has Access to Funds
Following the confirmation of exposure, the officials at Marathon Digital Holdings made a follow-up communication with the users.
The MARA officials made a promising follow-up announcement where they revealed that they did have access to their funds at the Signature Bank.
This was a relief for the entire cryptocurrency community that is linked with MARA.
The firm has confirmed that it has access to all of its $142 million worth of funds that are with the Signature Bank.
They have faced no interruptions with their business and are carrying out their operations as normal. Their treasury management has no shortage of funds as things are running as normally as they had been in the past.
They are even paying out all the invoices as normal and their business is running on the normal course. The company released the statement on Monday, which has resulted in bringing many investors back to the market.
Marathon’s Holding
As of now, the Bitcoin (BTC) holding of Marathon is tremendous. According to the latest data, the company is responsible for holding and managing 11,000 BTC tokens.
The firm has been around for a very long time in the cryptocurrency industry and it has done so much to support the entire investment community.
It is one of the firms that has helped investors tap into a financial system that is not linked with the traditional financial system at all.
People are able to make investments and generate gains in a very unique manner through Marathon. This is the reason why it has grown larger with time and its business has continued expanding.
Many were afraid that the firm’s exposure to the Signature Bank would be the end of it. However, the latest announcement by MARA has changed the situation entirely.
The investors can rejoice as their funds are not at any kind of risk and they can continue gaining from the platform as usual.