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 was 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
What are the fees associated with an IRA for gold?
$6 per month is the Individual Retirement Account Fee (IRA). This includes account maintenance fees and investment costs for your chosen investments.
To diversify your portfolio you might need to pay additional charges. The type of IRA you choose will determine the fees. Some companies offer free checking, but charge monthly fees for IRAs.
Many providers also charge annual management fees. These fees are usually between 0% and 1%. The average rate per year is.25%. These rates are often waived if a broker like TD Ameritrade is used.
Is buying gold a good option for retirement planning?
Although gold investment may not seem appealing at first glance due to the high average global gold consumption, it's worth considering.
The best form of investing is physical bullion, which is the most widely used. There are other ways to invest gold. It is best to research all options and make informed decisions based on your goals.
If you don’t need a safe place for your wealth, then buying shares of mining companies or companies that extract it might be a better alternative. If you are looking for cash flow from your investment, buying gold stocks will work well.
You can also put your money in exchange traded funds (ETFs). These funds allow you to be exposed to the price and value of gold by holding gold related securities. These ETFs may include stocks that are owned by gold miners or precious metals refining companies as well as commodity trading firms.
What is a Precious Metal IRA?
A precious metal IRA allows for you to diversify your retirement savings in gold, silver, palladium and iridium. These rare metals are often called “precious” as they are very difficult to find and highly valuable. These are excellent investments that will protect your wealth from inflation and economic instability.
Bullion is often used to refer to precious metals. Bullion refers only to the actual metal.
Bullion can be bought via various channels, such as online retailers, large coin dealers and grocery stores.
A precious metal IRA lets you invest in bullion direct, instead of purchasing stock. This will ensure that you receive annual dividends.
Precious Metal IRAs don’t require paperwork nor have annual fees. You pay only a small percentage of your gains tax. Plus, you can access your funds whenever you like.
How Do You Make a Withdrawal from a Precious Metal IRA?
First, determine if you would like to withdraw money directly from an IRA. After that, you need to decide if you want to withdraw funds from an IRA account. Next, make sure you have enough money in order for you pay any fees or penalties.
If you are willing to pay a penalty for early withdrawal, you should consider opening a taxable brokerage account instead of an IRA. You will also have to account for taxes due on any amount you withdraw if you choose this option.
Next, figure out how much money will be taken out of your IRA. This calculation depends on several factors, including the age when you withdraw the money, how long you've owned the account, and whether you intend to continue contributing to your retirement plan.
Once you know how much of your total savings to convert to cash, it's time to choose the type of IRA that you want. While traditional IRAs are tax-free, Roth IRAs can be withdrawn at any time after you reach 59 1/2. However, Roth IRAs will charge income taxes upfront and allow you to access your earnings later without additional taxes.
Once the calculations have been completed, it's time to open a brokerage accounts. A majority of brokers offer free signup bonuses, as well as other promotions, to get people to open accounts. However, a debit card is better than a card. This will save you unnecessary fees.
When you finally get around to making withdrawals from your precious metal IRA, you'll need a safe place where you can store your coins. Some storage areas will accept bullion, while others require you to purchase individual coins. You will need to weigh each one before making a decision.
For example, storing bullion bars requires less space because you aren't dealing with individual coins. You will need to count each coin individually. However, you can easily track the value of individual coins by storing them in separate containers.
Some people prefer to keep their coins 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.
Should you open a Precious Metal IRA
Before opening an IRA, it is important to understand that precious metals aren't covered by insurance. It is impossible to get back money if you lose your investment. All your investments can be lost due to theft, fire or flood.
Protect yourself against this type of loss by investing in physical gold or silver coins. These coins have been around for thousands and represent a real asset that can never be lost. You would probably get more if you sold them today than you paid when they were first created.
You should choose a reputable firm that offers competitive rates. It is also a smart idea to use a third-party trustee who will help you have access to your assets at all times.
Do not open an account unless you're ready to retire. Do not forget about the future!
What is the best precious-metal to invest?
The answer to this question depends on how much risk you are willing to take and what type of return you want. Although gold has traditionally been considered a safe investment choice, it may not be the most profitable. For example, if your goal is to make quick money, gold may not suit you. If you have the patience to wait, then you might consider investing in silver.
If you don't care about getting rich quickly, gold is probably the way to go. Silver may be a better option for investors who want long-term steady returns.
What does a gold IRA look like?
For people who are looking to invest in precious materials, Gold Ira account accounts provide tax-free investments.
You can purchase gold bullion coins in physical form at any moment. To start investing in gold, it doesn't matter if you are retired.
You can keep gold in an IRA forever. Your gold assets will not be subjected tax upon your death.
Your gold will be passed on to your heirs, without you having to pay capital gains taxes. Your gold is not part of your estate and you don't have to include it in the final estate report.
First, an individual retirement account will be set up to allow you to open a golden IRA. After you do this, you will be granted an IRA custodian. This company acts as a mediator between you, the IRS.
Your gold IRA Custodian will manage the paperwork and submit all necessary forms to IRS. This includes filing annual reports.
After you have created your gold IRA, the only thing you need to do is purchase gold bullion. Minimum deposit is $1,000 If you make more, however, you will get a higher interest rate.
When you withdraw your gold from your IRA, you'll pay taxes on it. You'll have to pay income taxes and a 10% penalty if you withdraw the entire amount.
However, if you only take out a small percentage, you may not have to pay taxes. There are exceptions. However, there are exceptions. If you take 30% or more of your total IRA asset, you'll owe federal Income Taxes plus a 20% penalty.
It is best to not take out more than 50% annually of your total IRA assets. A violation of this rule can lead to severe financial consequences.
Statistics
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
External Links
forbes.com
investopedia.com
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Want to Keep Gold in Your IRA at Home? It's Not Exactly Lawful – WSJ
finance.yahoo.com
How To
Guidelines for Gold Roth IRA
It is best to start saving early for retirement. It is best to start saving for retirement as soon you can (typically at age 50). You must contribute enough each year to ensure that you have adequate growth.
You also want to take advantage of tax-free opportunities such as a traditional 401(k), SEP IRA, or SIMPLE IRA. These savings vehicles allow you the freedom to contribute without having to pay tax on your earnings until they are withdrawn. These savings vehicles are great for those who don't have access or can't get employer matching funds.
The key is to save regularly and consistently over time. You may not be eligible for any tax benefits if your contribution is less than the maximum allowed.
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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
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