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$385 million

Bitcoin Miner Marathon Digital’s Shares Downgraded After Compute North Files For Bankruptcy Protection

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Bitcoin Miner Marathon Digital’s Shares Downgraded After Compute North Files For Bankruptcy Protection

Bitcoin mining firm Compute North filed for Chapter 11 bankruptcy protection in Texas on Thursday as the crypto winter continues to put pressure on crypto mining operations. The bankruptcy petition filed on September 22, indicates the company looks to stabilize operations in order to repay creditors.

Compute North Files for Chapter 11 Bankruptcy Protection

Five months ago last April, Compute North revealed the company was building a 300 megawatt (MW) data center in Texas. Months before that at the end of 2021, Compute North entered a deal with Marathon Digital Holdings (Nasdaq: MARA) and the two firms planned to host more than 100,000 application-specific integrated circuit (ASIC) miners in data centers around the country.

Recent Chapter 11 bankruptcy protection filings now show Compute North is dealing with financial issues. Speaking with Steven Church and David Pan from Bloomberg, Kristyan Mjolsnes, head of Compute North’s marketing and sustainability team explained that the firm looks to stabilize operations.

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Compute North seeks “the opportunity to stabilize its business and implement a comprehensive restructuring process,” Mjolsnes said. “[It] will enable us to continue servicing our customers and partners and make the necessary investments to achieve our strategic objectives,” the company’s executive explained.

The bankruptcy filing follows the company raising roughly $410 million in equity and debt funding this year. Furthermore, Compute North has had to deal with falling bitcoin (BTC) prices and at the end of June it was said that $4 billion in bitcoin mining loans were in distress. Falling bitcoin and crypto asset prices have triggered a number of bankruptcies stemming from digital currency lenders and cryptocurrency-backed hedge funds.

MARA Stock Downgraded Over Compute North’s Recent Bankruptcy Filing, Marathon Says Compute North’s Restructuring ‘Will Not Impact Current Mining Operations’

Compute North’s bankruptcy has affected Marathon Digital’s stock after BTIG analyst Gregory Lewis decided to downgrade the equity. Lewis said that Compute North’s recent filing will “weigh on MARA’s ability to grow its hash capacity. However, longer term, the bankruptcy of Compute North could provide an opportunity for MARA to build a data center infrastructure footprint at distressed pricing.” Marathon Digital also took to Twitter to discuss the recent bankruptcy filing.

“Today, a filing related to one of our hosting providers was published,” Marathon Digital tweeted. “Based on the information available at this time, it is our understanding that this filing will not impact our current mining operations. We are in communication with the hosting provider and monitoring their progress as they work through this process,” the bitcoin mining firm added.

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$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

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What do you think about Compute North’s bankruptcy filing and Marathon’s stock getting downgraded? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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$385 million

Compute North Reveals Bitcoin Miner Is Building A 300 MW Data Center In Texas

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Compute North Reveals Bitcoin Miner Is Building A 300 MW Data Center In Texas

The bitcoin mining operation Compute North has announced it is in the midst of constructing a 300-megawatt (MW) data center in Granbury, Texas. According to the mining firm, the data center located near Wolf Hollow Power Plant will be scalable up to 600 MW going forward.

300 MW of Capacity to Start, 600 MW in the Future

On April 8, the blockchain infrastructure and hosting services provider Compute North announced the launch of a new 300-MW bitcoin mining facility in Texas. The TIER 0 data center will be located near Wolf Hollow Power Plant and eventually, the company aims to scale the facility to 600 MW. Furthermore, Compute North will be providing grid-balancing services to the Energy Reliability Council of Texas (ERCOT).

The Eden Prairie, Minnesota-based Compute North recently secured $385 million in funding to scale the company’s operations. The Series C private equity investment was co-led by the energy and commodity firm Mercuria, and the sustainable energy investment firm Generate Capital. National Grid Partners also participated in Compute North’s Series C financing round. According to the firm, the company’s TIER 0 data center provides “the ability to respond quickly during times of peak demand that stress the grid.”

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Additionally, the new Compute North data center aims to hire “30 skilled positions for the facility.” Granbury’s City Manager, Chris Coffman, looks forward to the mining company bringing jobs into the area. “Granbury is excited to have a new employer in the neighborhood. Not only will Compute North bring quality jobs to our area, but they also bring an engaged corporate partner by supporting existing non-profits and being part of the community,” Coffman said in a statement on Friday.

Compute North Says Wolf Hollow Plant Co-Location Will Provide a ‘Unique Behind-the-Meter Approach’

According to Compute North, the data center will emit less carbon than most facilities of its size that are directly connected to the grid. “Compute North’s modular containers will be co-located at the Wolf Hollow plant through a unique behind-the-meter approach, bringing the load directly to the source,” the announcement on Friday highlights. Dave Perrill, the CEO and co-founder at Compute North explained the company is excited to see construction moving forward.

“We are developing the next generation of data centers meeting the unprecedented needs of next-generation technology at a time when the demand for energy efficiency and stabilizing the energy grid has never been higher,” Perrill said during the announcement. “We are committed to continued innovation to support timely demand response solutions, and we work closely with our energy partners to support local energy dynamics.”

Tags in this story

$385 million, 300 MW, 600 MW, Bitcoin, Bitcoin (BTC), Bitcoin mining, BTC Mining, Chris Coffman, compute north, Dave Perrill, Granbury Texas, Granbury’s City Manager, Series C, Texas, Texas Data Center, TIER 0 data center, Wolf Hollow Power Plant

What do you think about Compute North’s 300-MW data center construction with plans to scale up to 600 MW? Let us know what you think about this subject in the comments section below.

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Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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