THE DAILY ENCRYPT

October 3, 2022

Compute North – Data Center Provider for Big Mining Firms Files for Bankruptcy

Compute North is a data center provider for large crypto mining firms which has recently filed for bankruptcy and owes $500 million to nearly 200 creditors....
compute north files for bankruptcy
image by The Daily Encrypt

Compute North is a data center provider for large crypto mining firms which has recently filed for bankruptcy and owes $500 million to nearly 200 creditors.

Compute North, a provider of data centers for cryptocurrency miners, and blockchain companies, has filed chapter 11 bankruptcy before a Texas court. This is in response to the continuing spiraling energy costs and prolonged slump in the crypto market.

Compute North owes $500 million to over 200 creditors

While it is working out a repayment plan, the Minnesota-based company will still be able to continue operations. It stated that it owed at least 200 creditors $500 million. Compute North estimates that its assets are worth anywhere from $100 million to $500 million according to the documents.

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In 2017, the company was founded as a crypto mining operation. It then shifted to hosting services for other mining companies. It was unable to open a large Texas mining facility due to delays.

Compute North has clients including crypto mining giants Marathon Digital, and Compass Mining. Marathon Digital, Compass mining both tweeted that they don’t expect Compute North to have an impact on their business operations.

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Compute North has a number of deals with crypto miners, including Hive Blockchain or Atlas Mining.

Compute North’s bankruptcy filing is the latest casualty in the ongoing crypto winter. Crypto broker Voyager Digital and crypto lender Celsius Network filed bankruptcy earlier this year.

Combining falling cryptocurrency prices with rising energy costs has impacted miners’ profits. A closely-watched indicator of Bitcoin mining revenue fell to a two year low earlier in the month.

Elena Argyros

Elena Argyros

Elena is cryptocurrency writer / journalist based in Europe. She has extensive knowledge in the crypto space and is a solidity programmer by trade. Elena has built an extensive resume working with some of the most ground breaking blockchain firms. Being in Europe, Elena has amassed a large network of professionals in the space and states "The technology behind blockchain is going to impact everyone on earth in a good way, once you get to understand it".
Elena Argyros

Elena Argyros

Elena is cryptocurrency writer / journalist based in Europe. She has extensive knowledge in the crypto space and is a solidity programmer by trade. Elena has built an extensive resume working with some of the most ground breaking blockchain firms. Being in Europe, Elena has amassed a large network of professionals in the space and states "The technology behind blockchain is going to impact everyone on earth in a good way, once you get to understand it".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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