world’s largest Bitcoin (BTC) Marathon Digital, one of the mining companies, announced that it has invested $10 million in convertible preferred stock and $21.3 million in unsecured senior notes in different entities within the bankrupt data center Compute North.
Bitcoin Mining Company Marathon Digital’s Devices Found on Compute North’s Facilities
Marathon, which does not own mining facilities and uses third-party data centers to house its computers, also paid Compute North approximately $50 million in operating fees, according to a statement released on Thursday.
The company said these payments are primarily related to security deposits and prepayments related to the operation of the King Mountain and Wolf Hollow mining facilities in Texas.
Compute North filed for bankruptcy last month, citing a tough bear market, supply issues and problems with its biggest creditor.
Marathon, one of Compute North’s largest clients, places large computers known as miners in Compute North’s data centers for a fee to mine Bitcoin.
Marathon Says Mining Operations Are Unaffected by Bankruptcy Process
Marathon said the majority of its mining operations are conducted at the King Mountain facility by a joint venture between Compute North and NextEra.
It also has operations managed by Compute North at its Wolf Hollow facility, as well as mining operations at Compute North’s facilities in Nebraska and South Dakota.
However, the Bitcoin mining company said that its King Mountain and Wolf Hollow facilities were not directly involved in Compute North’s bankruptcy process. Marathon said it did not experience a significant impact at its King Mountain facility, but there were some delays at Wolf Hollow unrelated to the bankruptcy process.
Marathon has 5.7 exahash per second (EH/s) processing power and aims to reach 23 EH/s by mid-2023. In contrast, rival miner Riot Blockchain (RIOT) has a mining power of 5.6 EH/s and expects to reach 12.5 EH/s in the first quarter of next year.
*Not investment advice.
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