Compass Mining Appoints Two Interim CEOs in Bid to Rekindle ‘Goodwill’

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  • Com­pass’ board of direc­tors have appoint­ed chief tech­nol­o­gy offi­cer Paul Gosker and chief min­ing offi­cer Thomas Heller as inter­im co-pres­i­dents and CEOs
  • The appoint­ments come as Com­pass has been caught up in a string of accu­sa­tions from cryp­to host­ing firm Dynam­ics Min­ing over Com­pass’ alleged fail­ure to meet its pow­er con­sump­tion charges

Bit­coin min­ing and host­ing firm Com­pass Min­ing has appoint­ed two new inter­im CEOs fol­low­ing the res­ig­na­tion of the firm’s head, Whit­ney Gibbs, as well as its Chief Finance Offi­cer Jodie Fisher.

The embat­tled min­ing com­pa­ny – sup­pli­er of ASICs and oper­a­tor of bit­coin min­ing oper­a­tions – said Tues­day it has appoint­ed chief tech­nol­o­gy offi­cer Paul Gosker and chief min­ing offi­cer Thomas Heller as inter­im co-pres­i­dents and CEOs.

“Through this restruc­tur­ing, the com­pa­ny is whol­ly focused on regain­ing the good­will of our stake­hold­ers and the com­mu­ni­ty, as well as deliv­er­ing on our mis­sion of pro­vid­ing best-in-class ser­vice for min­ers of all sizes,” Com­pass said in a com­pa­ny post Mon­day via its website.

Com­pass’ board of direc­tors will begin seek­ing out a per­ma­nent pres­i­dent and CEO as well as CFO imme­di­ate­ly, the firm said. The appoint­ments come as Com­pass has been caught up in a string of accu­sa­tions by host­ing firm Dynam­ics Min­ing over its alleged fail­ure to meet its pow­er con­sump­tion charges. 

Block­works attempt­ed to con­tact Com­pass but did not receive a response by press time. Block­works also spoke with one employ­ee who declined to comment.

Dynam­ics, which had a con­tract with Com­pass, said it ter­mi­nat­ed its “Mas­ter Host­ing Ser­vice Agree­ment” with the Delaware-based sup­pli­er ear­li­er this month cit­ing six late pay­ments and three non­pay­ments, the com­pa­ny said in a tweet Sunday.

In a let­ter to Gibbs – dat­ed June 10 – by the law firm Gor­don, Fournaris & Mam­marel­la, P.A, act­ing on behalf of Dynam­ics, Com­pass is accused of fail­ing to pay its util­i­ty bill as well as month­ly host­ing fees. Oxford and Lewis­ton, both Dynam­ics facil­i­ties, also failed to make pay­ments in vio­la­tion of the agree­ment, the law firm said.

“All you had to was pay $250k for 3 months of pow­er con­sump­tion,” Dynam­ics said in a fol­low-up tweet on Mon­day. “Since you don’t give your clients their Ser­i­al Num­bers I couldn’t even help them. Twit­ter is the voice of your cus­tomer base, not the courtroom.”

Com­pass, how­ev­er, denied the accu­sa­tions levied against it claim­ing Dynam­ics “mis­un­der­stood” the con­tracts it had signed with respect to Dynam­ics’ facil­i­ties, accord­ing to a sep­a­rate post late Tuesday.

“Com­pass has per­formed all of its oblig­a­tions under its con­tracts with Dynam­ics, includ­ing its finan­cial oblig­a­tions,” the firm said. Dynam­ics oper­ates approx­i­mate­ly 1% of Com­pass Mining’s con­tract­ed capac­i­ty, accord­ing to Compass.

Accu­sa­tions against Com­pass come as large num­bers of bit­coin min­ers face pos­si­ble liq­ui­da­tion fol­low­ing the receipt of high-inter­est loans to fund min­ers’ spend­ing habits at a time when prices had remained rel­a­tive­ly buoyant.

Depressed cryp­to prices, accel­er­at­ed by recent devel­op­ments with Terra’s sta­ble­coin col­lapse and cryp­to lender Cel­sius’ liq­uid­i­ty woes, now appear to be eat­ing into prof­itabil­i­ty mar­gins for those firms sup­ply­ing the picks and shov­els to cryp­to miners.

Min­ers rely on three main areas for steer­ing busi­ness activ­i­ty in the red includ­ing a high­er bit­coin price, low­er or cheap­er elec­tric­i­ty prices and access to high-per­for­mance spe­cial­ty min­ing rigs known as ASICs (appli­ca­tion-spe­cif­ic inte­grat­ed circuits).

All three ele­ments, amid a mar­ket down­turn, are now induc­ing headaches for min­ers, as well as their cred­i­tors, and oth­er coun­ter­par­ties includ­ing min­ing oper­a­tors and ASIC suppliers.

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  • Sebas­t­ian Sinclair


    Senior Reporter, Asia News Desk

    Sebas­t­ian Sin­clair is a senior news reporter for Block­works oper­at­ing in South East Asia. He has expe­ri­ence cov­er­ing the cryp­to mar­ket as well as cer­tain devel­op­ments affect­ing the indus­try includ­ing reg­u­la­tion, busi­ness and M&As. He cur­rent­ly holds no cryptocurrencies. 

    Con­tact Sebas­t­ian via email at [email pro­tect­ed]

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