Cryptocurrency
Crypto News: Compute North BTC Mining Firm Files For Bankruptcy
Compute North owes 200 creditors approximately $500 million, and its assets are estimated to be valued between $100 million and $500 million.
Compute North, a Bitcoin (BTC) mining hosting service, has filed for chapter 11 bankruptcy, citing mounting pressure from the effects of crypto winter and increased energy expenses.
iexclusivenews reports that Dave Perrill, the company’s CEO, has also stepped down but will continue on the board.
This online news outlet understands that on September 22, the company filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of Texas, which is now pending before Judge David Jones.
The company can continue operating under a Chapter 11 filing while it develops a strategy to pay off creditors.
According to the statement, Compute North owes 200 creditors approximately $500 million, and its assets are estimated to be valued between $100 million and $500 million.
What You Should Know
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Compute North provides hardware, hosting services, large-scale crypto mining facilities, hardware, and a BTC mining pool.
It is one of the largest U.S. data center providers and has well-known BTC mining industry partners including Compass Mining and Marathon Digital.
Both businesses have issued statements on Twitter stating that, based on the information they currently have, their business activities will go normally.
“Compute North’s staff informed us today that the bankruptcy filing should not disrupt business operations. We are continuing to monitor the situation and will provide further updates as they become available,” noted Compass Mining.
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The mining industry has been significantly impacted by BTC’s bearish performance in 2022, and in the case of Texas, increased energy prices and frequent power outages during sweltering heat waves haven’t helped either.
A huge mining plant in Texas that Compute North was unable to monetize for months experienced a significant delay, Bloomberg Business writer David Pan noted on Twitter.
“Compute North’s massive 280MW mining facility in TX was supposed to run rigs in April but it couldn’t due to pending approvals. From then to later this year when it finally was able to energize the machines, Bitcoin prices had gone through multiple downward cycles, fundraising opportunities dried up and major lenders scaled back,” he wrote.
However, iexclusivenews Nigeria reports that Compute North joins a long line of cryptocurrency companies, like Voyager Digital, Three Arrows Capital, Celsius Network,. And BlockFi to mention a few, that have either experienced the effects of crypto winter or, in some cases, contributed to its development.
