Marathon Digital Holdings, a bitcoin miner, has disclosed an $81.3 million exposure to the recently bankrupted mining hosting firm Compute North, as reported by Cointelegraph.
Marathon disclosed its exposure on October 6, stating that the bulk was in operating deposits worth $50 million, which “were principally tied to King Mountain and Wolf Hollow security deposits and prepayments associated with the ongoing operation of those facilities.”
According to Cointelegraph, the balance is divided into $21.3 million for “an unsecured senior promissory note” and $10 million for convertible preferred Compute North shares. Compute North filed for Chapter 11 bankruptcy on Sept. 23 in the United States Bankruptcy Court for the Southern District of Texas.
A Chapter 11 petition allows the company to continue operating while it works out plans to restructure and repay creditors.
Marathon Digital stated that Compute North hosts elements of its BTC mining operations in Texas, Nebraska, and South Dakota. The company has stated that, for the time being, its operations hosted by Compute North would continue as usual.
Marathon reported an operating mining fleet of “about 37,000 active miners” producing around 3.8 Exahases per second (EH/s) by the end of September. However, since then, the number has grown dramatically, with 57,000 active miners producing 5.7 EH/s as of October 5, the Cointelegraph stated.
Marathon also stated that its total BTC holdings had reached 10,670 BTC, with a fair market value of about $207.3 million as of September 30 and that it has $55.3 million in unrestricted cash on hand.
(With insights from Cointelegraph)
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