Marathon reveals $ 80 million in total risk for bankrupt crypto mining data company

Marathon reveals $ 80 million in total risk for bankrupt crypto mining data company

Marathon Digital Holdings has more than $ 80 million in the record of the recent bankruptcy of the mining data company Compute North, said Bitcoin miner on Thursday.

Marathon has invested around $ 10 million in changeable preferred shares, plus $ 21.3 million "in connection with an unsafely priority promise to component North", said the listed company in a Awarding .

Marathon installed 40,000 mining rigs in Compute North's wind-powered mining location McCamey, Texas, one of the four US systems of the company deserving . Marathon started in the second quarter of 2022 to "expand its hosting agreements with Compute North", added the company.

Compute North, which registered bankruptcy after Chapter 11 at the end of September, has up to $ 500 million of outstanding payments to at least 200 creditors, according to court records in the southern district of Texas. The company was opened about six months after the company's $ 85 million series. Compute North also took up a foreign financing round of $ 300 million.

Compute North attributed falling Bitcoin prices and supply problems as reasons for bankruptcy, and his CEO, Dave Perrill, resigned at the time of the announcement.

"Compute North was a supportive partner, and we respect this voluntary step to stabilize your business," said Fred Thiel, chairman and CEO of Marathon. "Based on the information available today, we do not assume that this procedure will affect our ongoing business or our ability to achieve our primary goal of 23 Exahashes per second in 2023."

The Compute North commitment from Marathon is the latest challenge for the miner, which was hit hard by the recent decline in market. In the last quarter, the company recorded a quarterly record value correction of $ 127 million on its Bitcoin stocks.

"The second quarter was a challenge for the industry and especially for marathon," said Thiel during the company's conference call in August. "Bitcoin mining is an emerging industry ... and there is no game book. In view of our progress, however, we are confident that we will stay on the right track to expand our position as a leading company in this area."

But it is going up, said Thiel. The company is said to announce its official financial results for the third quarter in November, with the CEO said that its numbers are already promising.

"During the third quarter, we improved our Bitcoin production sequentially when we successfully left our facility in Montana and continued to operate at new locations, including the King Mountain wind farm in Texas," he said.

In the first week of October, the company had added around 19,000 new mining rigs since the end of the previous quarter-good for two exahashes per second.

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The post marathon reveals an overall risk of USD 80 million compared to Bankrotter Krypto Mining Data Firm is not a financial advice.