The subsidiary of Digital Currency Group and crypto-mining company Foundry Digital plans to acquire two turnkey mining facilities in the US from struggling Bitcoin miner Compute North.
In the latest press release, Foundry also said that it will also acquire other assets as well as the option to purchase a third facility under development from the computer infrastructure company.
Foundry will purchase Compute North’s North Sioux City, SD, and Big Springs, Texas. The facilities’ full operating capacity is 6 MW and 11 MW, respectively. The purchase will also include rights to fully develop and operate the Compute North facility located in Minden, NE, a fleet of company-owned mining machines.
Foundry will also purchase intellectual property rights, including those associated with MinerSentry, which happens to be Compute North’s cloud-based management and monitoring software for large-scale data centers.
Following the development, Foundry CEO Mike Collier said,
Our mission has been to strengthen the digital asset infrastructure by supporting miners through all market cycles. Compute North has been a long-term partner of ours, and we’re excited to have the opportunity to continue building on the foundation they’ve laid over many years while growing the North American mining ecosystem.”
The development of the acquisition of the DCG subsidiary comes at a time when another company under its umbrella – Genesis Global Capital – is still on the verge of bankruptcy. Reports indicated that the crypto broker is in dire need of fresh capital to recover from the collapse of FTX.
North account: bankruptcy
The bitcoin mining sector has suffered greatly as a result of the drop in crypto-asset prices and the rise in US interest rates. During the turbulent summer, many mining companies’ results were hit hard. Compute North was one of the victims who filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the Southern District of Texas in September in an effort to stabilize its operations under court protection.
The terms of the deposit allowed Compute North to continue operating while putting in place a comprehensive restructuring plan to pay off its creditors. The company revealed that it owes up to $500 million to at least 200 creditors, while its assets amount to between $100 million and $500 million.
The subsidiary after DCG to acquire Bitcoin mining facilities and other assets from Compute North first appeared on CryptoPotato.