bitcoin (BTC) mining hosting firm Compute North has filed for Chapter 11 bankruptcy amid growing pressure on the firm due to the effects of crypto winter and rising energy costs. The firm’s CEO, Dave Perrill, has also stepped down but will remain on the board.
Kompanija dostavljen a Chapter 11 bankruptcy filing in the United States Bankruptcy Court for the Southern District of Texas on Thursday, which is now pending before Judge David Jones.
Under a Chapter 11 filing, the firm is still able to keep its operations going as it works out a plan to repay creditors. The filing navodno obrisi that Compute North owes around $500 million to 200 creditors, while its assets are said to be worth between $100 million and $500 million.
Compute North offers large scale crypto mining hosting services and facilities, hardware and a BTC mining pool. It is one of the largest data center providers in the U.S. and has big-name partners in the BTC rudarstvo sector, such as Compass Mining and Marathon Digital.
Both companies have come out with statements via Twitter, noting that with the information they have at this stage, their business operations will continue as normal.
“Osoblje Compute North-a obavijestilo nas je danas da prijava stečaja ne bi trebala poremetiti poslovanje. Nastavljamo da pratimo situaciju i davat ćemo daljnja ažuriranja kako budu dostupna”, primećeno Compass Mining.
Danas je objavljena prijava koja se odnosi na jednog od naših hosting provajdera. Na osnovu informacija dostupnih u ovom trenutku, razumijemo da ova prijava neće utjecati na naše trenutne rudarske operacije.
— Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) Septembar 22, 2022
The bearish performance of BTC in 2022 has had a significant impact on the mining sector this year, and in the context of Texas, rising energy costs and multiple power outages tokom intenzivni toplotni talasi haven’t helped either.
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Bloomberg Business reporter David Pan highlighted on Twitter that Compute North may have been impacted by a costly delay to a large mining facility in Texas that it wasn’t able to monetize for months.
“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.
Compute North adds to a long list of crypto firms that have either fallen victim to crypto winter or, in some cases, helped create it — including Voyager Digital, Three Arrows Capital, Celsius Network and BlockFi, to name a few.
Source: https://cointelegraph.com/news/btc-mining-firm-compute-north-files-for-bankruptcy