Compute North's business goes south

Compute North's business goes south

The operator of the Crypto Mining Center Compute North reported bankruptcy in Texas and was the latest victim of the bear market environment, which was affected by a severe decline in Bitcoin prices and increasing electricity costs.

The Petition submitted.

According to the file, the company based in Minnesota owes at least 200 creditors of up to $ 500 million. His assets are worth between $ 100 and $ 500 million.

According to his estimate of the available funds, Compute North indicated that after payment of the administrative costs, it would not have any capital to distribute unsecured creditors.

Compute North started in 2017 as a crypto mining company, but shifted his focus in 2018 to provide co-location hosting services. In March it grew to 100 employees and opened a 300 megawatt data center in Granbury, Texas in April. His website shows.

The company has recently raised $ 385 million in external financing in February according to Crunchbase data. Investors include Mercuria, National Grid Partners and Generates Capital.

fluctuating Bitcoin prices and rising electricity costs have affected the profitability of the crypto miners, since many homepool who once shaped money from their own garages find that they now have problems.

arcane research stated that the daily income was Bitcoin-Miner decreased by over 10 % in the last week and generated $ 17.9 million a day-the lowest level since November 2020. This is less than the income of $ 62 million a day at the height of the crypto bull market in November 2021.

delays caused by the energy supplier of Compute North prevented one of his largest customers, Marathon Digital, and at the beginning of this year to activate its mining machines for months. Marathon instead of in the west Texas facility of the company had a 280 megawatt bitcoin mining system.