Comment on Bitcoin Miner Marathon Digital’s Shares Downgraded Following Compute North’s Bankruptcy Filing –
Bitcoin News On Thursday, the bitcoin mining company Compute North filed for Chapter 11 bankruptcy in Texas as the pressure from the crypto winter mounted on the industry.
According to the bankruptcy petition submitted on September 22, the firm is trying to normalize operations so that it can pay off its creditors.
Files for Chapter 11 Bankruptcy Protection as Compute North
In April of last year, five months ago, Compute North said that it was constructing a 300 MW data center in Texas.
Months earlier, at the end of 2021, Compute North and Marathon Digital Holdings (Nasdaq: MTHLD) signed a contract.
More than 100,000 application-specific integrated circuits (ASIC) miners would be housed by MARA) and the two companies in data centers around the nation.
Compute North is currently experiencing with financial troubles, according to recent Chapter 11 bankruptcy protection papers.
The leader of Compute North’s marketing and sustainability team, Kristyan Mjolsnes, discussed the company’s efforts to stabilize operations with Bloomberg’s Steven Church and David Pan.
According to Jones, Compute North is looking for “the opportunity to stabilize its business and implement a thorough restructuring process.”
According to the firm executive, “[it] will allow us to keep providing services to our partners and customers and to make the necessary investments to accomplish our strategic goals.”
The business raised about $410 million in debt and equity investment this year before declaring bankruptcy.
In addition, Compute North has seen declining bitcoin (BTC) pricing. At the end of June, it was reported that $4 billion in loans for bitcoin mining were in trouble.
A number of digital currency lenders and cryptocurrency-backed hedge funds have declared bankruptcy as a result of falling bitcoin and cryptocurrency asset values.
Due to Compute North’s recent bankruptcy filing, Marathon’s stock was downgraded. Compute North’s restructuring, according to Marathon, “Will Not Impact Current Mining Operations.”
Marathon Digital’s price has been impacted by Compute North’s bankruptcy as a result of BTIG analyst Gregory Lewis’ decision to lower the stock.
Lewis stated that MARA’s potential to increase its hash capacity will be “weighed” by Compute North’s latest filing.
Longer term, meanwhile, the bankruptcy of Compute North may present MARA with a chance to construct a data center infrastructure footprint at a loss. Marathon Digital spoke about the most recent bankruptcy filing on Twitter as well.
Marathon Digital tweeted, “Today, a filing related to one of our hosting providers was published.”
“According to the facts we now have, we believe that this submission won’t have an effect on our mining activities as they are now.
The bitcoin mining company stated, “We are in contact with the hosting provider and keeping an eye on their progress while they go through this procedure.
What do you think about Marathon’s stock being lowered and Compute North declaring bankruptcy? Please share your thoughts on this topic in the comments box below.
Redman, Jamie
Jamie Redman is a Florida-based financial tech writer who serves as the News Lead for Bitcoin.com News.
Since 2011, Redman has taken an active part in the Bitcoin community. He is passionate in decentralized apps, open-source software, and Bitcoin.
For Bitcoin.com News, Redman has penned more than 6,000 pieces about the disruptive protocols that are currently under development since September 2015.
Tags for this article Bankrupt cryptocurrency companies, $385 million, 300 MW, 600 MW, Bitcoin, Bitcoin (BTC), mining, BTC Mining, BTIG analyst, Chapter 11 Chris Coffman,
Dave Perrill, Gregory Lewis, MARA, MARA stock, Marathon Digital, shares, Texas, Texas Data Center, TIER 0 data center,
Wolf Hollow Power Plant, compute north, Compute North bankruptcy, Compute North’s bankruptcy
Tags in this story Bitcoin
$385 million, 300 MW, 600 MW, bankrupt crypto firms, Bitcoin, Bitcoin (BTC), Bitcoin mining, BTC Mining, BTIG analyst, Chapter 11, Chris Coffman, compute north, Compute North bankruptcy, Compute North’s bankruptcy, Dave Perrill, Granbury Texas, Gregory Lewis, MARA, MARA stock, Marathon Digital, shares, Texas, Texas Data Center, TIER 0 data center, Wolf Hollow Power Plant
