Marathon Digital Holdings announced its “bitcoin production and mining operations updates for September 2022” in a press release on October 6th. Top bitcoin (BTC) and other cryptocurrencies mining companies noted the crucial information and updates around the company’s performance. Meanwhile, one such information shared in the press release was about Compute North’s bankruptcy filing.
Compute North plays a crucial role in the mining facilities of Marathon Digital along with several others. These facilities include major facilities such as King Mountain wind farm, McCamey and Wolf Hollow, Granbury, Texas. There will be no impact on mining operations of Marathon Digital though, as the company clarified.
Bitcoin Miner’s Stance for Compute North
Marathon Digital CEO, Fred Thiel stated the company does not anticipate if the bankruptcy proceedings are going to impact its ongoing operations as well its target of achieving 23 exahashes/sec by the next year. The company is continuing discussions with the management of Compute North and closely monitoring the ‘progress of their proceedings’.
Theil argued the operations are expected to continue as usual given the asset light model of the company. This gives the company privilege to relocate their miners to any other locations in case of any need. Such agility gives the company a valuable strategic advantage to maintain through current market conditions.
Crypto Winter made Compute North to go South
On 22nd September 2022, Compute North filed for Chapter 11 bankruptcy at US Bankruptcy Court in the Southern District of Texas. The decision of the mining solution provider came in the wake of inability to continue the operations following the crypto winter and consistently increasing energy prices.
Theil said for Compute North that it remained a supportive partner for the mining firm and they also respect their “voluntary step to stabilize their business.”
Marathon Digitals also highlighted the overall financial exposure to Compute North which accounts for approx 81.3 million USD. It includes the convertible preferred stocks worth 10 million USD, unsecured senior promissory note worth 21.3 million and a 50 million USD fund that the mining firm paid as operating deposits.
Bitcoin miner founded in November 2010 is one among the top mining firms within the mining industry. Currently it holds 10,670 BTC worth 207.3 million USD and stands at a valuation of approx 1.53 billion USD.
Source: https://www.thecoinrepublic.com/2022/10/07/compute-north-bankruptcy-will-not-impact-marathon-digitals-ceo-fred-theil/