Bitcoin mining firm Compute North files for bankruptcy, CEO resigns

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Bit­coin (BTC) min­ing data cen­ter oper­a­tor Com­pute North filed for Chap­ter 11 Bank­rupt­cy, adding that CEO Dave Per­rill resigned ear­li­er in September.

The firm report­ed­ly owes $500 mil­lion to about 200 cred­i­tors and has assets val­ued between $100 and $500 million.

Com­pute North filed for bank­rupt­cy on Sept. 22 and will con­tin­ue oper­a­tions as it seeks to find solu­tions to its liq­uid­i­ty prob­lem. Mean­while, CEO Dave Per­rill will remain on the board while chief oper­at­ing offi­cer Drake Har­vey will take over as CEO.

Com­pute North is one of the biggest data cen­ter oper­a­tors for cryp­to min­ers and has part­ner­ships with major min­ers like Marathon Dig­i­tal and Com­pass Min­ing. It raised $385 mil­lion in Feb­ru­ary — $300 mil­lion came from debt financ­ing, while $85 mil­lion came from its Series C equi­ty financing.

North Compute faced a declining revenue source

The com­pa­ny saw its for­tune tank after a mas­sive mar­ket down­turn that plunged Bitcoin’s val­ue below $20,000. Addi­tion­al­ly, ris­ing ener­gy costs and increas­ing BTC min­ing dif­fi­cul­ty have made it dif­fi­cult for min­ers to stay prof­itable.

Bloomberg Busi­ness Reporter David Pan tweet­ed that one rea­son Com­pute North filed for bank­rupt­cy was the delay in its 280mw min­ing facil­i­ty in Texas becom­ing oper­a­tional — main­ly due to approval issues.

Accord­ing to Pan:

“[North Compute]’s bank­rupt­cy indi­cates increas­ing dis­tress in Bit­coin mining.”

Compute North partners unaffected

Com­pute North part­ners have revealed that the firm’s bank­rupt­cy would not affect their operations.

Bit­coin min­ing firms — Marathon Dig­i­tal and Com­pass Dig­i­tal — tweet­ed that the data cen­ter operator’s bank­rupt­cy would not impact their min­ing operations.

Com­pute North is the first cryp­to min­ing-relat­ed com­pa­ny to file for bank­rupt­cy. Mean­while, sev­er­al cryp­to lenders like Cel­sius Net­work, Voy­ager Dig­i­tal, and oth­ers had ear­li­er filed for bank­rupt­cy.

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