Bitcoin Miner Marathon Expects to Recover Less Than Half Its Deposit From Bankrupt Compute North – CoinDesk

Bitcoin Miner Marathon Expects to Recover Less Than Half Its Deposit From Bankrupt Compute North – CoinDesk

Spread the love

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

Marathon Digital (MARA), one of the largest publicly traded bitcoin miners, expects to recover only $22 million of the $50 million it deposited with bankrupt bitcoin miner and data center provider Compute North.

Marathon – which doesn’t own its mining facilities and uses third-party data centers to park its computers – previously said that it paid about $50 million in operating deposits to Compute North. In its update on Tuesday, the company said it has now written off $8 million of that total, and expects to recover about $22 million of the $42 million still remaining.

That would leave $20 million of the deposit still unaccounted for, and Marathon said it continues “to work with the various parties involved to determine [its] ultimate recoverability.”

In addition to that $50 million deposit, Marathon previously said that it invested $10 million in convertible preferred stock and $21.3 million in an unsecured senior promissory note in different entities within Compute North.

Compute North filed for bankruptcy protection last month, citing the severe bear market, supply issues and trouble with its largest lender. Marathon is one of Compute North’s largest customers, placing its heavy-duty bitcoin mining rigs in Compute North’s data centers for a fee.

In other updates, Marathon said it reduced its revolver borrowings to $30 million from $50 million and – after mining 472 bitcoin in November – has 4,200 unrestricted bitcoin and 11,757 total bitcoin as of Nov. 30. That 472 bitcoin mined last month was down 23% from October thanks to higher energy costs and lower bitcoin prices that affected its King Mountain site in Texas.

Marathon shares were unchanged in post-market trading on Tuesday but were lower by 5.7% in the regular session, and now off 82% this year, roughly in line with mining peers.


Sign up for The Node, our daily newsletter bringing you the biggest crypto news and ideas.

By signing up, you will receive emails about CoinDesk product updates, events and marketing and you agree to our terms of services and privacy policy.

DISCLOSURE

Please note that our

privacy policy,

terms of use,

cookies,

and

do not sell my personal information

has been updated

.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a

strict set of editorial policies.

CoinDesk is an independent operating subsidiary of

Digital Currency Group,

which invests in

cryptocurrencies

and blockchain

startups.

As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of

stock appreciation rights,

which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG

.

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

Tags
,

Related News

maximizing-returns-with-blockdag,-bittorrent-&-venom-blockchain-–-crypto-reporter
argo-blockchain’s-(arbk)-hold-rating-reaffirmed-at-canaccord-genuity-group-–-defense-world
bitcoin-cash-trading-escalates-as-second-halving-event-nears-–-news-bytes-bitcoin-news-–-bitcoin.com-news