- Compute North is the latest crypto-related firm to file for chapter 11 bankruptcy.
- The filing states that the firm owes $500M to 200 creditors.
- Earlier this month, the firm’s CEO stepped down to serve as a chairman.
Compute North, one of the largest companies that hosts Bitcoin mining, has filed for chapter 11 reorganization bankruptcy amid the uncertainty of increasing energy costs and the ongoing crypto meltdown.
According to the filed document in the Southern District of Texas, the Minnesota-based company owes up to $500 million to not less than 200 creditors, while its evaluated assets accounted for between $100 million and $500 million.
In 2017, Compute North began its crypto mining operation and transitioned to lay out hosting services to mining firms. According to the firm’s website, the company owns four centers in US, which house data centers for large crypto mining partners, such as Compass Mining and Marathon Digital. Fortunately, both Compass Mining and Marathon Digital tweeted that the bankruptcy wouldn’t affect their business’s performance and operations.
In February, the firm raised $385 million in equity and debt financing, and eventually secured several deals with crypto miners Hive Blockchain and Singapore-based Altas Mining. However, the firm runs into delays in launching a large mining facility, due to the high risk of power costs and local regulations in Texas. Because of these risks, Hive Blockchain backed out with its deal to Compute North, which weaken the firm’s capability to make income.
Earlier this month, Compute North’s CEO Dave Perrill stepped down as the firm’s chief to serve as a chairman. The company’s spokesperson confirmed that Perrill will be replaced by their COO Drake Harvey. Compute North will go by its day-to-day operations while working out a plan to pay its creditors.
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