Compute North, a Bitcoin (BTC) mining data centre company, has filed for Chapter 11 bankruptcy, and CEO Dave Perrill departed earlier this month, Cryptoslate noted.
According to reports, the company owes $500 million to around 200 creditors and has assets worth between $100 and $500 million.
Cryptoslate further noted that the company’s fortunes plummeted following a major market collapse that drove Bitcoin’s value below $20,000.
Furthermore, growing energy prices and increased difficulty in mining BTC have made it tough for miners to remain profitable. According to Bloomberg Business Reporter David Pan, one of the reasons Compute North filed for bankruptcy was the delay in opening its 280MW mining facility in Texas, which was primarily due to approval hurdles.
(With insights from Cryptoslate)
Also Read: Bitcoin-based Compute North applies for Chapter 11 bankruptcy