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Gungun Bhatia
Oct 7, 2022
by Gungun Bhatia

Marathon Announces $80M Exposure To Bankrupt Mining Firm 

Marathon

Table of contents

  1. Marathon - Provider of Digital Asset Technology
  2. Compute North's Bankruptcy Filing
Marathon Digital Holdings, a Bitcoin miner, has reported an $81.3 million exposure to the recently insolvent mining hosting provider, Compute North. On October 6, Marathon stated that the majority was composed of operating deposits totaling $50 million, mentioning that these deposits were attributed primarily to King Mountain and Wolf Hollow security deposits and compensations affiliated with the operational phase of those sites.

Marathon - Provider of Digital Asset Technology

Marathon is a provider of digital asset technology that prioritizes protecting and sustaining the Bitcoin ecosystem. The company is now working to establish itself as one of the biggest and most environmentally friendly Bitcoin mining companies in North America while maintaining a leaner asset base.

The remaining amount is divided between $10 million in convertible redeemable preferred Compute North shares and $21.3 million designated for an outstanding senior promissory note.

Compute North's Bankruptcy Filing

After filing for Chapter 11 bankruptcy on September 23 in the Southern District of Texas of the United States Bankruptcy Court, Compute North filed again a few weeks later. The company can continue operating under a Chapter 11 filing while it develops strategies to reorganize and reimburse creditors. Marathon claimed that there had been no substantial adverse effects on the firm's operations at King Mountain, where miners continue to be powered according to schedule. The mining company further stated that there had been some disruptions at Wolf Hollow [Texas], which Compute North has ascribed to a legislative problem.

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Marathon Announces $80M Exposure To Bankrupt Mining Firm 
Gungun Bhatia
Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.

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