Compute North, a bitcoin mining company, filed for Chapter 11 bankruptcy protection in Texas Thursday. This is as the crypto winter continues its pressure on crypto mining operations. According to the bankruptcy petition, Compute North filed for Chapter 11 bankruptcy protection in Texas on Thursday, September 22nd. The company seeks to stabilize operations to repay creditors.
Compute North Files to Protect Chapter 11 Bankruptcy Protection
Compute North announced that it was building a 300-MW data center in Texas five months ago. Compute North had already signed a deal with Marathon Digital Holdings at the end 2021. The two companies planned to host more that 100,000 ASIC miners in data centers across the country.
Recent Chapter 11 bankruptcy protection filings show that Compute North is currently dealing with financial problems. Kristyan Mcjolsnes, the head of Compute North’s sustainability and marketing team, explained to David Pan and Steven Church that the company aims to stabilize its operations.
Mjolsnes stated that Compute North is looking for "the chance to stabilize its business, and implement a comprehensive restructuring program." The company's executive stated that "[It]will enable us to continue serving our customers and partners, and make the necessary investment to achieve our strategic goals."
Compute North raised approximately $410 million this year in equity and debt funding. Compute North also had to contend with falling bitcoin prices. At the end of June, it was reported that $4 billion worth of bitcoin mining loans were in trouble. 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"
After Gregory Lewis, BTIG analyst, decided to downgrade Marathon Digital's equity stock due to Compute North's bankruptcy, Marathon Digital's stock has been affected. Lewis stated that Compute North's latest filing will "weigh upon MARA's capacity to grow its hash capability." Longer term, Compute North's bankruptcy could offer MARA an opportunity to build a data center infrastructure footprint for distressed pricing," Marathon Digital said.
Marathon Digital tweeted, "Today, we published a filing regarding one of our hosting providers." According to the available information, we believe that this filing will not affect our current mining operations. The bitcoin mining company said that they are currently in contact with the hosting provider, and will monitor their progress throughout the process."
What are your thoughts on Compute North's bankruptcy filing, and Marathon's stock being downgraded? Please comment below to let us know your thoughts on this topic.
Frequently Asked Questions
How much of your portfolio should you hold in precious metals
First, let's define precious metals to answer the question. Precious metals refer to elements with a very high value relative other commodities. This makes them valuable in investment and trading. Gold is by far the most common precious metal traded today.
There are many other precious metals, such as silver and platinum. The price volatility of gold can be unpredictable, but it is generally stable during periods of economic turmoil. It also remains relatively unaffected by inflation and deflation.
All precious metals prices tend to rise with the overall market. That said, they do not always move in lockstep with each other. When the economy is in trouble, for example, gold prices tend to rise while other precious metals fall. Investors expect lower interest rates which makes bonds less appealing investments.
The opposite effect happens when the economy is strong. Investors choose safe assets such Treasury Bonds over precious metals. They become less expensive and have a lower value because they are limited.
To maximize your profits when investing in precious metals, diversify across different precious metals. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.
How do you withdraw from an IRA that holds precious metals?
First, you must decide if you wish to withdraw money from your IRA account. You should also ensure that you have enough money to cover any fees and penalties associated with withdrawing funds.
A taxable brokerage account is a better option than an IRA if you are prepared to pay a penalty for early withdrawals. If you choose this option, you'll also need to consider taxes owed on the amount withdrawn.
Next, determine how much money you plan to withdraw from your IRA. This calculation is dependent on several factors like your age when you take the money out, how long you have had the account, and whether or not your plan to continue contributing.
Once you determine the percentage of your total saved money you want to convert into cash, then you need to choose which type IRA you will use. Traditional IRAs allow you to withdraw funds tax-free when you turn 59 1/2 while Roth IRAs charge income taxes upfront but let you access those earnings later without paying additional taxes.
Once the calculations have been completed, it's time to open a brokerage accounts. Many brokers offer signup bonuses or other promotions to encourage people to open accounts. You can save money by opening an account with a debit card instead of a credit card to avoid paying unnecessary fees.
When it's time to make withdrawals from your precious-metal IRA, you'll need a place to keep your coins safe. Some storage facilities will accept bullion bars, others require you to buy individual coins. You'll have to weigh the pros of each option before you make a decision.
Bullion bars, for example, require less space as you're not dealing with individual coins. But you will have to count each coin separately. On the flip side, storing individual coins allows you to easily track their value.
Some prefer to keep their money in a vault. Some people prefer to store their coins safely in a vault. Regardless of the method you prefer, ensure that your bullion is safe so that you can continue to enjoy its benefits for many years.
How is gold taxed within a Roth IRA
The tax on an investment account is based on its current value, not what you originally paid. All gains, even if you have invested $1,000 in a mutual funds stock, are subject to tax.
If you place the money in a traditional IRA, 401(k), or other retirement plan, there is no tax when you take it out. Only earnings from capital gains and dividends are subject to tax. These taxes do not apply to investments that have been held for more than one year.
These accounts are subject to different rules depending on where you live. For example, in Maryland, you must take withdrawals within 60 days after reaching age 59 1/2 . Massachusetts allows you up to April 1st. New York offers a waiting period of up to 70 1/2 years. You should plan and take distributions early enough to cover all retirement savings expenses to avoid penalties.
What are some of the advantages and disadvantages to a gold IRA
An Individual Retirement account (IRA) is a better option than regular savings accounts in that interest earned is exempted from tax. This makes an IRA great for people who want to save money but don't want to pay tax on the interest they earn. But, this type of investment comes with its own set of disadvantages.
You may lose all your accumulated savings if you take too much out of your IRA. Also, the IRS may not allow you to make withdrawals from your IRA until you're 59 1/2 years old. You will likely have to pay a penalty fee if you withdraw funds from an IRA.
The downside is that managing your IRA requires fees. Many banks charge between 0.5% and 2.0% per year. Other providers charge monthly management costs ranging from $10-50.
You can purchase insurance if you want to keep your money out of a bank. A majority of insurance companies require that you possess a minimum amount gold to be eligible for a claim. It is possible that you will be required to purchase insurance that covers losses of up to $500,000.
If you decide to open a gold IRA, it is important to know how much you can use. Some providers limit the amount of gold that you are allowed to own. Others allow you the freedom to choose your own weight.
It's also important to decide whether or not to buy gold futures contracts. Physical gold is more costly than gold futures. Futures contracts, however, allow for greater flexibility in buying gold. They enable you to establish a contract with an expiration date.
Also, you will need to decide on the type of insurance coverage you would like. The standard policy doesn't include theft protection or loss due to fire, flood, or earthquake. It does include coverage for damage due to natural disasters. You may consider adding additional coverage if you live in an area at high risk.
You should also consider the cost of storage for your gold. Storage costs are not covered by insurance. Additionally, safekeeping is usually charged by banks at around $25-$40 per monthly.
To open a IRA in gold, you will need to first speak with a qualified custodian. A custodian is responsible for keeping track of your investments. They also ensure that you adhere to federal regulations. Custodians don't have the right to sell assets. Instead, they must keep your assets for as long you request.
After you've determined which type of IRA is best for you, fill out the paperwork indicating your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. Also, you should specify how much each month you plan to invest.
Once you have completed the forms, you will need to mail them to your provider with a check and a small deposit. After reviewing your application, the company will send you a confirmation mail.
Consider consulting a financial advisor when opening a golden IRA. Financial planners are experts at investing and can help you determine which type of IRA is best for you. They can also help reduce your costs by suggesting cheaper options for purchasing insurance.
How much gold should your portfolio contain?
The amount you make will depend on the amount of capital you have. You can start small by investing $5k-10k. As you grow, it is possible to rent desks or office space. So you don't have all the hassle of paying rent. You only pay one month.
You also need to consider what type of business you will run. In my case, we charge clients between $1000-2000/month, depending on what they order. If you are doing this type of thing, it is important to think about how much you can expect from each client.
You won't get a monthly paycheck if you work freelance. This is because freelancers are paid. Therefore, you might only get paid one time every six months.
Before you can determine how much gold you'll need, you must decide what type of income you want.
I would recommend that you start with $1k-2k worth of gold and then increase your wealth.
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- Yahoo Finance provides information about Barrick Gold Corporation's (GOLD) stock price, news, quote, and history.
The History of Gold as an Asset
From the very beginning of time, gold was a currency. It was popular because of its purity, divisibility. uniformity. scarcity and beauty. It was also traded internationally due to its high value. Different weights and measurements existed around the world, however, because there were not international standards to measure gold. One pound sterling, for example, was equivalent in England to 24 carats, and one livre tournois, in France, to 25 carats. A mark, on the other hand, was equivalent in Germany to 28 carats.
The United States started issuing American coins in the 1860s made of 90% copper and 10% zinc. This led to a decrease of demand for foreign currencies which in turn caused their prices to rise. At this point, the United States minted large amounts of gold coins, causing the price of gold to drop. Because the U.S. government had too much money coming into circulation, they needed to find a way to pay off some debt. They sold some of their excess gold to Europe to pay off the debt.
Many European countries didn't trust the U.S. dollars and started to accept gold for payment. Many European countries started to accept paper money as a substitute for gold after World War I. The price of gold has risen significantly since then. Today, although the price fluctuates, gold remains one of the safest investments you can make.
By: Jamie Redman
Title: Bitcoin Miner Marathon Digital’s Shares Downgraded After Compute North Files for Bankruptcy Protection
Sourced From: news.bitcoin.com/bitcoin-miner-marathon-digitals-shares-downgraded-after-compute-north-files-for-bankruptcy-protection/
Published Date: Fri, 23 Sep 2022 18:30:43 +0000