Bitcoin mining firm Compute North files for bankruptcy

Crypto Update
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Compute North, a major operator of cryptocurrency mining data center and which counts many of the top bitcoin (B T c) have mining firms as partners, filed for bankruptcy.

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Minnesota-based company, which Allegedly owed $500 to creditors, filed Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas. The voluntary filing was submitted on Thursday, 22 September 2022.

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Count Answer Files for Bankruptcy

The bankruptcy filing for one of the largest data center operators in the crypto sector comes as widespread cryptocurrency market The battle with the cryptocurrency winter continues with the price of the digital asset plummeting.

Amidst the downturn in the market, crypto mining companies Those who have been top BTC holders in the past have sold to meet their daily cash obligations. For these companies, falling crypto prices along with the effects of rising electricity costs and operational delays has been bad for business.

Marathon Digital (hit), one of the major bitcoin mining firms with a custody deal with Compute North, said it was monitoring the situation. although it is It is believed that The filing will not affect current activities.

“Today, a filing was published relating to one of our hosting providers. Based on the information available at this time, it is our understanding that this filing will not affect our current mining operations.”

Compass Mining, which provides hosting and brokerage services, also tweeted that its legal team was reviewing the bankruptcy filing. But like Marathon, Compass has an understanding that the petition will not affect its mining operations.

Costly Delays at Compute North’s Texas Facility?

Compute North began its operations in 2017, beginning its business as a crypto mining firm before offering co-location and brokerage services – specifically providing low-cost electricity access to data centers.

In April of this year, the company opened a massive co-location mining facility in Texas. But its operations were delayed due to regulatory hurdles.

Bloomberg business reporter David Pan says this stage of the company’s growth could be the first step toward filing for bankruptcy. He tweeted,

“Compute North’s massive 280mw mining facility in TX was supposed to run the rig in April, but it couldn’t due to pending approvals. From then until the end of this year when it was finally able to activate the machines, the bitcoin price has gone up to several times. Went through downward cycles, fundraising opportunities dried up and major lenders scaled back.

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