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 stated.
Compute North declared bankruptcy on September 22 and will continue operations while it finds answers to its liquidity issues. Meanwhile, CEO Dave Perrill will continue on the board, while CFO Drake Harvey will take over as President. Compute North is a prominent data centre operator for cryptocurrency miners, including relationships with large miners like as Marathon Digital and Compass Mining. It raised $385 million in February, including $300 million in loan financing and $85 million in Series C equity funding. 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, Cryptoslate noted.
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)