Bitcoin Mining Firm Compute North Files Bankruptcy

Bitcoin Mining Firm Compute North Files Bankruptcy
  • Back in April, the firm said that work had begun on a Granbury, Texas, co-location plant.
  • Compute North has at least 200 creditors who are owed a total of almost $500 million.

Cryptocurrency startups have had a rough winter. It has impacted the day-to-day operations of some organizations by creating liquidity constraints and damaging balance sheets. In July, for example, two prominent players in the field, Voyager Digital and Celsius Network, filed for Chapter 11 bankruptcy.

Crypto Winter Effect

In return, Chapter 11 filings let businesses continue operations while they devise a strategy to repay debtors. The newest turn of events is the Chapter 11 bankruptcy filing by Bitcoin mining hosting company Compute North Holdings Inc. The corporation claims it has assets valued between $100 million and $500 million in its petition. Importantly, Compute North has at least 200 creditors who are owed a total of almost $500 million.

Head of marketing and sustainability at Compute North, Kristyan Mjolsnes, told Bloomberg in an email about the filing.

Kristyan stated:

“The company filed bankruptcy to stabilize its business while it restructures under court protection.”

Compute North was launched in 2017 as a cryptocurrency mining business, according to the company’s website. Gradually, it grew to provide co-location services, which included the provision of cheap energy for data centers. The Bitcoin mining infrastructure company secured $385 million in equity and debt funding earlier this year.

Then, in April, the firm said that work had begun on a Granbury, Texas, co-location plant with a capacity of 300 MW. It was then that Compute North’s CEO and co-founder, Dave Perrill, said about the plans for this new work.

Dave stated:

“We are developing the next generation of data centers meeting the unprecedented needs of next-generation technology at a time when the demand for energy efficiency and stabilizing the energy grid has never been higher.”

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