Bitcoin miner Marathon explores Compute North bid: Bloomberg
Quick Take
- CEO Fred Thiel told Bloomberg he’s hired advisers to determine both its exposure to Compute North’s bankruptcy and a potential bid for the bankrupt firm.
- Marathon’s poor third-quarter earnings were partially tied to a $39 million impairment charge linked to Compute.
Marathon Digital Holdings Inc. has hired advisers to help navigate a potential bid for its partner Compute North, a troubled crypto miner currently going through bankruptcy, according to Bloomberg.
Marathon CEO Fred Thiel told Bloomberg his company had hired Guggenheim Partners and law firm Weil Gotshal & Manges to advise on both its exposure to Compute’s bankruptcy and a potential bid for the bankrupt data center.
Marathon utilizes an “asset-light strategy,” which requires it to use third-party companies that possess the machinery and infrastructure to mine cryptocurrency, Bloomberg said.
The Las Vegas-based miner recorded a loss for the third quarter thanks in part to an impairment charge of $39 million linked to Compute North’s bankruptcy, the report also said.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.