Bitcoin (BTC) Mining Data Center Operator Compute North submitted Regarding the Chapter 11 bankruptcy, he added that CEO Dave Perrill stepped down in early September.
The company reportedly owes about $500 million to about 200 creditors and has assets worth between $100 million and $500 million.
Compute North files for bankruptcy On September 22nd, we will continue to work to find a solution to the liquidity issue. Meanwhile, CEO Dave Perrill will remain on the board and COO Drake Harvey will become president.
Compute North is one of the largest data center operators for cryptocurrency miners and has partnered with leading miners such as Marathon Digital and Compass Mining. The company raised $385 million in February. Of that, $300 million was raised through debt financing and $85 million through Series C equity financing.
Compute North faced declining revenue streams
The company saw its fortune tank after a massive market downturn that saw Bitcoin value below $20,000. In addition, rising energy costs and increasing difficulty of his BTC mining are making it harder for miners to stay profitable.
Bloomberg Business Reporter David Pang murmured One of the reasons Compute North filed for bankruptcy was the delay in starting operations at its 280mw mining facility in Texas. This is mainly due to authorization issues.
Compute North’s bankruptcy illustrates the systemic predicament of the Bitcoin mining industry, but it is also the result of a unique mix of risks. 1) Hosting companies that build data centers to run rigs for miners
— David Pan (@DavidPan_1) September 23, 2022
According to Pan:
“[Compute North]bankruptcy shows the growing woes in Bitcoin mining. ”
Compute North partners are unaffected
A Compute North partner has revealed that the company’s bankruptcy will not affect its operations.
Bitcoin mining companies Marathon Digital and Compass Digital have tweeted that the bankruptcy of their data center operator will not affect their mining operations.
A filing was released today relating to one of our hosting providers. Based on the information available at this time, we understand that this submission will have no impact on current mining operations.
— Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) September 22, 2022
Compute North staff informed 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.
— Compass Mining 🧭 (@compass_mining) September 22, 2022
Compute North is the first cryptocurrency mining company to file for bankruptcy. Meanwhile, several crypto lenders such as Celsius Network and Voyager Digital had previously filed for bankruptcy.
