MicroStrategy has confirmed that none of their 130KBitcoin is custodied by the controversial bank, Silvergate despite the firm having to pay off a loan to the bank.
MicroStrategy, a business intelligence firm is now publicly denying any links of their organization with Silvergate. They are not the only ones to do so. There is another organization, the issuer of Tether, the stablecoin who joined the business firm to deny any links with the Slivergate Bank becomes the latest business to do so.
The organizations revealed these news after the bank announced delay of their annual reports on finance. The fear for the investors and the firms is that this bank is at the edge of bankruptcy. This is why businesses like MicroStrategy are denying their links with the bank.
The firm also said that they will not pay back their loan to the bank until a bankruptcy or insolvency happens.
MicroStrategy Denying Links With Silvergate:
The chief tech officer at Tether, Paolo Ardonio said that Tether also does not have any links to Silvergate the bank. If the bank collapses, it can be very costly for the crypto industry.
Silvergate is a crypto bank that used to help crypto exchanges with some financial infrastructure solutions and services. They have also helped mining companies and investors around the world. This firm also helps stablecoin infrastructure platform and other lending services in the industry.
The platform has a 24/7 platform for payments called the Silvergate Exchange Network that was processed over a trillion in the transactions.
In spite of the large effects on the network, their delayed filing of financial reports is having a consequential effect on the partnerships with different companies like MicroStrategy. Within a day of the announcement, companies like Circle, Coinbase, Galaxy Digital, Bitstamp have comfirmed the news of scaling back their business with the bank and now companies like MicroStrategy and Tether also denied their links with the bank.