Major miner Marathon Digital may buy its partner Compute North, which is facing bankruptcy

  • Ultramining.com
  • 12:27 Dec 09, 2022
  • 745
Major miner Marathon Digital may buy its partner Compute North, which is facing bankruptcy

Marathon Digital is considering buying its former partner, Compute North, which has filed for bankruptcy. Miner is assessing the situation with the help of restructuring specialists. At this point, the extent of the impact of Compute North's bankruptcy on the mining company's business needs to be revealed.

Compute North and Marathon Digital previously worked together, but due to the market situation and financial problems began to disagree. In a report on the results of the third quarter, the miner pointed out that the bankruptcy of Compute North led to its losses of $39 million. In addition, on the part of Marathon, there was a demand to withdraw $22 million of the deposit provided to the operator of data centers earlier.

Compute North began operations in 2017 in the United States. In addition to hosting, customers were provided with cryptocurrency mining equipment and the ability to connect to a BTC pool. Due to financial difficulties, a bankruptcy petition was filed in the fall, after which the restructuring procedure began. According to preliminary estimates, the liabilities amounted to at least $500 million, while the amount of assets is in the range of $100 million to $500 million.

A final offer from the mining company will be formed after a comprehensive assessment of the situation.

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