MicroStrategy, Tether adds to firms distancing from Silvergate as stock dives 57%
Business intelligence firm MicroStrategy and stablecoin issuer Tether have become the latest two firms to publicly deny any meaningful exposure to Silvergate Bank.The news comes as Silvergate announced on Mar.
1 that it would postpone the filing of its annual 10-K financial report, which has many fearing the cryptocurrency bank may be on the brink of a bankruptcy filing.This led MicroStrategy — which holds over 130,000 Bitcoin (BTC) — to confirm that its BTC collateral is not custodied with Silvergate.The Michael Saylor-founded firm added that it will not need to pay back a loan from Silvergate until Q1, 2025, and that a bankruptcy or insolvency event wouldn’t “accelerate” the loan repayment.
We have a loan from Silvergate not due until Q1 ‘25. There are mkt concerns re SI’s fin. condition. For anyone wondering, the loan wouldn’t accelerate b/c of SI insolvency or bankruptcy.
Our BTC collateral isn’t custodied w/ SI & we have no other financial relationship w/ SI.Paolo Ardoino, the chief technology officer of Tether confirmed in a Mar.
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