Bitcoin (BTC) mining and hosting company Compute North has filed for Chapter 11 bankruptcy protection due to “crypto winter” and rising energy costs. The company’s CEO Dave Perrill has stepped down, but will remain on the board.
The company filed a Chapter 11 bankruptcy filing in the Southern District of Texas Bankruptcy Court on the 22nd.applied for。
The filing of Article 11 of the bankruptcy law allowed the company to continue operating while making plans to repay creditors.Compute North owes about $500 million to about 200 creditors and assets worth between $100 million and $500 million, according to the filing.reported。
Compute North offers large scale crypto mining hosting services, data centers, hardware and BTC mining pools. It is one of the largest data center providers in the US and has partnered with well-known companies in the BTC mining space such as Compass Mining and Marathon Digital.
Both companies issued a statement via Twitter, stating that, based on current information, they will continue to operate as normal.
“Compute North staff informed us today that the bankruptcy filing will not disrupt our operations,” the statement said.Compass Mining says。
Today, a filing related to one of our hosting providers was published. Based on the information available at this time, it is our understanding that this filing will not impact our current mining operations.
— Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) September 22, 2022
BTC’s bearish performance in 2022 has had a major impact on the mining industry.At the same time, in Texas, where mining companies are concentrated, rising energy costs and multipleblackoutalso followed up.
Bloomberg’s David Pang tweeted that Compute North’s failure to monetize its large mining facility in Texas for months may have played a role.Point out。
“Compute North’s massive 280MW TX mining facility was supposed to have its rigs operational in April, but it was pending approval and could not go live, until later this year when the machine finally got power. , the Bitcoin price cycled repeatedly, funding opportunities dried up, and major lenders backed off.”
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