Bitcoin Mining Company Compute North Files For Bankruptcy
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The ongoing bear crypto market has caused significant disruption in the industry. A well-known bitcoin mining company, Compute North is the latest company to go bankrupt due to weakening market conditions. In a recent development Compute North is Filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of Texas.
In addition, the bankruptcy petition will be heard by Judge David R Jones. In addition to this, the CEO of Compute North, Dave Perrill also resigned earlier this month. However, he continues on the board and participates in the company’s decisions. These are the significant developments of the organization in recent weeks.
Compute North is working on its restructuring plan
According to Compute North’s application, the company will continue to operate. However, it must come up with a restructuring plan to pay back creditors. According to estimates, the company currently owes around 500 million dollars to around 200 creditors. But its assets are worth between $100 million and $500 million.
Compute North is now operating under court protection. It takes time for the company to work on its plan and stabilize the business for the future. Previously, the company was able to get $385 million in funding. It included Series C fundraising and debt financing. In addition, the mining company also established a 200 megawatt plant in Texas.
Since its founding in 2017, Compute North has scaled its crypto mining operations. It offers affordable power to data centers. In addition, it also hosts Compass Mining, another Bitcoin mining company. Compass Mining is also supporting Compute North’s bankruptcy filing legal team and proceedings.
The weakening of the crypto market and the rise in interest rates in the United States have caused a major disruption in the digital asset industry. Several mining companies have collapsed due to these unstable conditions. In addition, energy costs have hampered the operation of various mining facilities across the United States.
Regardless, it remains to be seen how Compute North will proceed in its bankruptcy process. The company and its employees believe that this will not affect the operations of the mining company. Still, the coming weeks will be critical for the mining company.