Crypto miner Marathon has decided not to purchase any assets from failing hosting company Compute North, according to the company CEO.
According to Bloomberg, Marathon previously engaged counsel to help manage a prospective purchase for its partner Compute North, a problematic crypto miner presently in bankruptcy.
Marathon CEO Fred Thiel, according to recent reports corroborated by The Block, claims this is not the case.
“We were prepared to bid on the King Mountain asset … in order to protect our interests if necessary — which in the end it wasn’t.”
According to a bankruptcy court ruling sanctioning the deal, Compute North agreed to sell its portion of the partnership to US Data King Mountain at an auction on November 15. According to Thiel, this business is a subsidiary of data center developer US Bitcoin Corp.
“We wanted to make sure a competitor did not win the bid,” he also said.
Marathon spent $31.3 million in Compute North. It invested $10 million in convertible preferred stock of Compute North Holdings, Inc and $21.3 million related to an unsecured senior promissory note with Compute North LLC. Additionally, the company paid Compute North entities a total of $50 million in operating deposits.
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