The firm owes $500 million to 200 creditors, with the value of its assets ranging from $100 to $500 million

Mining company Compute North files for bankruptcy

23.09.2022 - 12:20

276

2 min

What’s new? On September 22, Compute North, a provider of digital infrastructure and cryptocurrency mining solutions, filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the Southern District of Texas. The reasons for the decision were the growing pressure on the company due to the effects of crypto winter and the rising cost of energy. According to a statement, Compute North owes about $500 million to 200 creditors, while the value of the company’s assets ranges from $100 to $500 million.

Compute North’s statement

What else does the statement say? Under the provisions of Chapter 11, the company can continue its activities while a plan to repay its creditors is being worked out.

The firm’s CEO Dave Perrill reportedly left his position, remaining on the board of directors.

Compute North offers hosting services, equipment, and a pool for BTC mining. The company is one of the largest data center providers in the United States. Compute North’s partners include mining companies Compass Mining and Marathon Digital.

According to representatives of Compass Mining, Compute North’s employees notified them that filing for bankruptcy should not disrupt business operations.

A similar statement was made by the Marathon Digital team. On Twitter, the company’s representatives wrote on their Twitter that the filing will not affect their current cryptocurrency mining operations.

In February, Compute North raised $385 million to develop its mining operations. The Series C round was led by funds such as National Grid Partners, Mercuria, and Generate Capital. Compute North planned to use the funding to further expand the company and develop new data centers.

Compass Mining began partnering with Compute North in July. The partnership involves providing a 75 MW of capacity at a data center in Granbury, Texas, and hosting 25 000 ASIC miners.

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy