Marathon Digital invested a total of $31.3 million in Compute North, a hosting provider that just filed for Chapter 11 bankruptcy.
The investments are divided across various Compute North company organizations. Marathon invested $10 million in Compute North Holdings, Inc. convertible preferred stock and $21.3 million in an unsecured senior promissory note with Compute North LLC.
Marathon also paid a total of $50 million in operational deposits to Compute North businesses.
According to a statement released Thursday, Marathon does not expect the bankruptcy process to have an impact on its estimated growth objective of 23 exahashes per second (EH/s) in 2023.
Fred Thiel, Marathon’s chairman and CEO, said:
“While we expect operations to continue as originally anticipated, our asset light model provides us with the optionality to relocate our miners to other locations, should the need arise.”
The company just began energizing a 280-megawatt wind-powered Bitcoin mining plant in West Texas alongside Compute North. In July, the two businesses signed another 42-megawatt hosting agreement.
Compute North declared bankruptcy this month, claiming a severe bear market, supply concerns, and difficulties with its major lender. Marathon is one of Compute North’s top customers, renting out heavy-duty computers known as miners to mine Bitcoin in Compute North’s data centers for a charge.
Marathon stated that the Compute North firms linked with both the King Mountain wind farm and the Wolf Hollow locations in Texas are not immediately subject to the Chapter 11 procedure.
While there have been some delays at Wolf Hollow, which Compute North has blamed on a regulatory issue, the business claims that the King Mountain facility has not been harmed.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu