As revealed by Marathon Digital Holdings (a Bitcoin mining company), it has an exposure of up to $81.3M to Compute North – the firm which provides mining hosting and recently became bankrupt. A breakdown was provided by Marathon regarding its exposure, elaborating that the major amount was related to the operating deposits (nearly $50M).
Marathon Reveals $80 Million Exposure to Bankrupt Compute North
It also mentioned that the respective deposits were linked with Wolf Hollow and King Mountain security deposits as well as the prepayments dealing with those sites’ presently running operations. The remaining amount of amount is divided between $21.3M (specified for a senior promissory memo as well as $10M in convertible favored stock of Compute North.
This is witnessed weeks following the submission of a bankruptcy filing by Compute North in the Texas-based US Bankruptcy Court for the Southern District on the 23rd of September. Under the respective filing, the company has permission to carry on its activities according to its strategy to repay its creditors and do an overall restructuring.
As per Marathon Digital, its Bitcoin mining activities’ specific portions are hosted on the behalf of the bankrupt Compute North across the locations like South Dakota, Nebraska, and Texas. The company has delineated that currently, the operations thereof (which are hosted on Compute North’s behalf) will keep on running as usual.
On 6th October, the platform asserted that – in line with the information present today – it is not anticipated that the respective proceedings impact the present activities or the ability of the company to achieve its essential goal of nearly 23 per-second exahashes in the coming year.
The Recent Performance of Marathon
The firm has not gone through any huge negative effects in the case of its activities at King Mountain and the miners are continuously emerging according to the plan. However, it added, a few delays had been seen by it in the case of the Texas-based Wolf Hollow which – according to Compute North – has occurred because of a regulatory issue.
While the profit margins of the miner are destined to have been closed due to Bitcoin’s bearish nature during this year, it was stressed by Marathon that the operational performance of the firm is getting improved with time. As of 30th September, in the words of the platform, the mark of around 10,670 BTC has been reached by the cumulative Bitcoin holdings of Marathon.