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Bitcoin mining company Compute North files for bankruptcy – Crypto News Aktuell

Bitcoin mining company Compute North files for bankruptcy – Crypto News Aktuell, Crypto Trading News
Compute North, which happens to be the latest victim of the ongoing crypto routine, has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas.

That submission is pending before Judge Bankruptcy David R Jones. The company’s CEO, Dave Perrill, also resigned from his position earlier this month but will remain on the board.

Calculate north in trouble

Under the terms of the filing, the company will be able to continue operating while it finalizes a comprehensive restructuring plan to repay creditors. Compute North announced that it owed at least 200 creditors up to $500 million. His assets, on the other hand, are worth between $100 million and $500 million.

The bankruptcy application is intended to help stabilize the business, as a restructuring process is being carried out under judicial protection.

The filing comes seven months after the Minnesota-based crypto mining infrastructure provider secured a $385 million round that includes a Series C fundraiser and debt financing. It recently broke ground on a 300-megawatt co-location facility in Texas.

Compute North was started in 2017 as a crypto mining operation. During the year, it expanded its operations to include co-location services that provide cost-effective power to data centers. The company is also a hosting partner of Compass Mining, another giant in the mining industry BTC-Mining sector. Following the development, the latter said its legal team is reviewing the bankruptcy filings and added,

“Compute North employees have advised 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

The falling prices for cryptocurrencies and rising US interest rates have had a negative impact on the digital assets space. Mining company profits have been badly hit in what has been a fairly volatile summer. compass miningfor one, lost a few lucrative mining assets in Georgia this month.

The shutdown is followed by a 50% increase in energy costs. The company cited protecting miners from excessive changes in energy prices recently made by the local utility and also revealed plans to open another facility in Texas.

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Source: Crypto News Deutsch

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