Compute North, a Bitcoin (BTC) mining hosting firm, has filed for chapter 11 bankruptcy, citing mounting pressure from the effects of crypto winter and rising energy prices. Dave Perrill, the company's CEO, has also decided to step down but will remain on the board.
In the United States, the company filed for Chapter 11 bankruptcy. On September 22, the case was filed in Bankruptcy Court for the Southern District of Texas and is now before Judge David Jones.
A Chapter 11 filing allows the company to continue operating while it works out a strategy to repay creditors. According to the filing, the firm owes around $500 million to 200 creditors, with assets valued between $100 million and $500 million.
Compute North provides large-scale crypto mining hosting services and facilities, hardware, and a BTC mining pool. It is one of the biggest data center providers in the country and has well-known BTC partners such as Compass Mining and Marathon Digital.
Both companies have issued statements via Twitter, stating that their business operations will remain the same based on the information available at this time.
BTC's bearish performance in 2022 has had a massive effect on the sector this year, and rising energy costs and numerous power outages during extreme heat waves haven't helped either.
According to Bloomberg Business reporter David Pan, the firm may have been harmed by a costly pause to a large facility in Texas, which it could not monetize for months.
Compute North joins a long list of cryptocurrency firms that have either been victims of — or helped to create — crypto winter, along with Voyager Digital, Three Arrows Capital, Celsius Network, and BlockFi.
A lot of firms declare bankruptcy; do you think that Compute North’s move will create a significant impact on the crypto mining industry? Let us know your thoughts by sharing this article on social media.