Bitcoin Mining Firm Compute North Files Bankruptcy
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- In April, the company said that work had begun at the plant in Granbury, Texas.
- Compute North has at least 200 creditors who are owed a total of nearly $500 million.
Cryptocurrency startups have had a rough winter. It has affected the day-to-day operations of some organizations by creating liquidity constraints and damaging balance sheets. For example, in July, two major players in the industry, Voyager Digital and Celsius Network, filed for Chapter 11 bankruptcy.
Crypto Winter Effect
In return, Chapter 11 filings allow companies to continue operating while they devise a strategy to repay debtors. The latest turn of events is the Chapter 11 bankruptcy filing of Bitcoin mining services company Compute North Holdings Inc. The company claims in its petition that it has assets between $100 million and $500 million. Importantly, Compute North has at least 200 creditors who are owed a total of nearly $500 million.
Kristyan Mjolsnes, Compute North’s director of marketing and sustainability, told Bloomberg in an email about the application.
“The company filed for bankruptcy to stabilize its business while it restructures under court protection.”
Compute North was launched in 2017 as a cryptocurrency mining company, according to the company’s website. Gradually, it grew to offer sharing services, which included supplying cheap energy to data centers. The bitcoin mining infrastructure company received $385 million in equity and debt financing earlier this year.
Then in April, the company announced that work had begun in Granbury, Texas, on the same facility with a capacity of 300 MW. That’s when Dave Perrill, CEO and founder of Compute North, told us about the plans for this new job.
“We are developing next-generation data centers that meet the unprecedented needs of new generation technology at a time when the demand for energy efficiency and energy grid stabilization has never been greater.”
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