BTC mining firm Compute North files for bankruptcy

Bitcoin (BTC) mining hosting firm Compute North has filed for chapter 11 bankruptcy amid mounting pressure on the firm due to the effects of the crypto winter and rising energy costs. The firm's CEO Dave Perrill has also resigned but will remain on the board.

The company filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas on September 22 and is currently pending before Judge David Jones. Under the Chapter 11 filing, the firm can continue to operate while it works on a plan to repay creditors. The filing states that Compute North owes about $500 million to 200 creditors, while the value of its assets is said to be between $100 million and $500 million. Compute North offers large-scale crypto mining hosting services and facilities, hardware and a BTC mining pool. Compute North, one of the largest data center providers in the US, has big-name partners in the BTC mining sector such as Compass Mining and Marathon Digital. Both companies stated on Twitter that their business operations will continue as normal with the information they have at this stage. "Compute North's staff informed 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." https://twitter.com/MarathonDH/status/1573083511619305472 BTC's bearish performance in 2022 has had a significant impact on the mining sector this year, and in the context of Texas, rising energy costs and multiple power outages during intense heatwaves have not helped. Bloomberg Business reporter David Pan highlighted on Twitter that Compute North may have been affected by a costly delay at a major mining facility in Texas, where it has not made money for months. "Compute North's massive 280MW mining facility in Texas was supposed to start drilling rigs in April but couldn't due to pending approvals. From then until late this year when it was finally able to power the machines, Bitcoin prices went through multiple down cycles, fundraising opportunities dried up and major lenders backed off." Compute North adds to a long list of crypto firms that have fallen victim to - or in some cases helped create - the crypto winter, including Voyager Digital, Three Arrows Capital, Celsius Network and BlockFi. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!