Cryptocurrency

Marathon Digital invested over $30 million in bankrupt Compute North

Bitcoin (BTC) miner Marathon Digital has invested $10 million in convertible preferred stock and $21.3 million in unsecured senior promissory notes in failed cryptocurrency firm Compute North, reports Oct. 6. It revealed that. statement.

The press release further states that BTC miners have paid Compute North $50 million as operating deposits. The deposit covered the security deposit and advance payment for operations at Compute North’s Wolf Hollow and King Mountain mining facilities in Texas.

Marathon Digital does not own any mining facilities. Instead, we use data centers operated by third parties such as Compute North for our operations.

Meanwhile, Marathon said Compute North’s bankruptcy is unlikely to affect its operations as it remains focused on projected growth of 23 exahash per second (EH/s) in 2023. It currently has a capacity of 5.7 EH/s.

CEO Fred Thiel said:

โ€œWe expect operations to continue as originally anticipated, but our asset-light model will give us the option to relocate miners elsewhere if needed.โ€

Compute North filed for bankruptcy last month due to liquidity problems caused by the bear market. The company says filing for bankruptcy will allow it to restructure its business. The company owes about $500 million to his 200 creditors.

Marathon currently holds over 10,000 BTC

A press statement revealed that Marathon currently holds 10,670 BTC. According to the company, 360 BTC were produced in September 2022 and 616 BTC in the third quarter of this year.

Year-to-date indicators show that Marathon has produced 2,582 BTC as of September 30, a 23% increase in BTC production.

According to CEO Thiel, the company aims to add an additional 19,000 miners within the next 30 days, and is poised for even greater success. Currently, the company has 57,000 active miners, representing about 5.7 of his exahashes per second.

Meanwhile, Marathon stock is down more than 60% despite improving numbers. Its stock performance mirrors other publicly traded crypto-related companies.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button