MicroStrategy Claims Minimal Exposure as Crypto.com, Coinbase, and Gemini Pause Transactions with Silvergate Bank – What's Going On?
MicroStrategy has denied any meaningful exposure to Silvergate as crypto firms who banked with the crypto bank are rushing for the exits amid concerns about its financial condition.
In a Thursday tweet, business intelligence firm MicroStrategy said their Bitcoin holdings, which consists of over 130,000 Bitcoin (worth $2.9 billion), are not custodied with Silvergate.
The company also said they have no other financial relationship with the embattled crypto bank.The Michael Saylor-founded firm disclosed that it has a loan from Silvergate, adding that it will not need to pay back the loan until Q1 2025 and that a bankruptcy or insolvency event wouldn’t “accelerate” the loan repayment.The news comes after Silvergate announced earlier this week that it won't be able to file its annual financial report to the SEC on time and that it is evaluating its ability to stay in business.
The bank's shares fell more than 55% Thursday following the announcement.Silvergate is a traditional, federally insured lender that has positioned itself as a gateway to the crypto sector.
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