However, both MicroStrategy and Tether have come forward to dismiss any speculation of suffering meaningful exposure due to their dealings with Silvergate Capital. MicroStrategy, a business intelligence firm that has invested heavily in Bitcoin, has denied claims that a substantial portion of its Bitcoin holdings were placed under the custody of Silvergate Capital. The firm has asserted that none of the 130,000 BTC run in the Silvergate custody services.
While the firm has admitted to taking a loan, the repayment of which is scheduled for the first quarter of 2025, it has dismissed any concerns of being affected by Silvergate Capital’s financial troubles. Similarly, Tether, a stablecoin issuer, has also denied having any meaningful exposure to the sinking crypto bank.
The announcements by both firms come after Silvergate Capital’s decision to delay filing its annual 10-K report, leading to fears of the bank seeking Chapter 11 bankruptcy. However, MicroStrategy and Tether’s dismissal of any significant exposure to the bank has eased concerns in the crypto community.
The news has been welcomed by investors, who have been closely monitoring the situation. The crypto market has been volatile in recent weeks, with Bitcoin’s price dropping significantly. However, the news from MicroStrategy and Tether has provided some stability to the market, with Bitcoin’s price showing signs of recovery.
Overall, the dismissal of any significant exposure to Silvergate Capital by MicroStrategy and Tether has provided some relief to the crypto community. While the situation with the crypto bank remains uncertain, the news has eased concerns of any significant impact on the market.
