Bitcoin Mining Firm Files North for Bankruptcy

Compute North, which just so happens to be the latest victim in the ongoing crypto track, has filed for Chapter 11 bankruptcy in US Bankruptcy Court for the Southern District of Texas.

The filing is pending with Bankruptcy Judge David R. Jones. The company’s CEO, Dave Burrell, also left his position earlier this month but will remain on the board.

Think North is in trouble

Under the terms of the submission, the company will be able to continue operating while it prepares a comprehensive restructuring plan to pay off creditors. Compute North has revealed that it owes up to $500 million to at least 200 creditors. On the other hand, its assets are between $100 million and $500 million.

Filing for bankruptcy is expected to help stabilize the business as the restructuring process takes place under the protection of the court.

The deposit comes seven months after the Minnesota-based crypto-mining infrastructure provider secured a $385 million round of Series C financing and debt financing. Recently, work began on a 300 MW joint distribution facility in Texas.

Compute North was launched in 2017 as a crypto mining operation. During the year, the company expanded its business to include shared hosting services that provide low-cost power to data centers. The company is also the host facility partner of Compass Mining, another giant in the BTC mining sector. After the development, the latter said that his legal team is reviewing bankruptcy filings and addedAnd the

“Compute North employees told us today that the bankruptcy filing should not disrupt business operations. We continue to monitor the situation and will provide further updates as they become available.”

Mining companies struggle

Falling cryptocurrency prices and rising interest rates in the US have negatively affected the digital asset space. Mining companies’ results were severely hampered during a somewhat unstable summer. Compass mining, for one person, Lost some profitable mining sites in georgia this month

The shutdown follows a 50 percent increase in energy costs. The company had cited protecting miners from excessive power rate changes recently implemented by local utilities as a reason and also revealed plans to open another plant in Texas.

Bitcoin Mining Firm calculating North’s bankruptcy filings first appeared on CryptoPotato.

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