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. 2 Twitter post that Tether is not exposed to Silvergate either.
#Tether does not have any exposure to Silvergate.
A collapse of the cryptocurrency bank could prove costly for the rest of the industry.
Silvergate is a fintech firm that provides financial infrastructure solutions and services to some of the largest cryptocurrency exchanges, institutional investors and mining companies in the world.
It offers a 24/7 payments platform, named Silvergate Exchange Network, which has reportedly processed over $1 trillion in transactions since 2017.
The firm also provides a stablecoin infrastructure platform, digital asset custody management and collateralized lending services to several
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