A Bitcoin mining platform Compute North has submitted a bankruptcy filing recently. During the current bear market, it has been difficult for firms to survive. The frequent liquidity crisis had resulted from the respective situation. Previously in July this year, for example, a couple of famous brands named Celsius Network and Voyager Digital Assets have already filed their applications for bankruptcy.
Compute North Submits a Bankruptcy Filing
In this respect, Compute North Holdings Inc. has come to the front as another instance. The platform has applied for Chapter 11 bankruptcy. The venue, which provides hosting for Bitcoin mining, possesses assets worth ranging between $100M-$500M, as per the bankruptcy filing. A noteworthy thing here is that the firm owes almost $500M to a minimum of two hundred creditors. Kristyan Mjolsnes – the head of sustainability and marketing at Compute North – stated that the venue applied for bankruptcy just to get its business stabilized under the protection provided by the court.
In line with the details given on the official web portal of Compute North, the company was established back in 2017 to initiate mining activities. After that, it steadily spread its span to offer co-location facilities along with the cost-effective energy to serve the data centres. Formerly in 2022, the mining infrastructure company had collected an amount of approximately $385M in the form of debt and equity funding for financing the latest BTC mining-related data centres thereof.
The firm declared in April this year that the establishment of the project was going on in Granbury for a co-location facility of nearly 300 megawatts. At that time, Compute North’s co-founder and CEO – Dave Perrill – remarked that they were constructing the data centres’ new generation to cope with the unprecedented requirements of the technology of the coming generation with considerable preparation being done beforehand.
The Bankruptcy Filing Not to Influence Company’s Business
A notable thing is that Marathon Digital Holdings is considered among the consumers of Compute North. Recently, a Twitter post was shared by the venue in which it revealed that the BTC mining company’s filing for bankruptcy will not influence the present activities related to mining. It moved on to say that they are at the moment conversing with the provider of the hosting services as well as monitoring the advancement thereof.
Compute North asserts to offer hosting facilities for BTC mining at a huge scale along with the provision of hardware equipment related to these operations along with a pool for Bitcoin mining. Compute North’s position within the United States is that of a part of the biggest providers of data centres within the whole country. Marathon Digital and Compass Mining are known as the partners of the company across the entire industry of Bitcoin mining.
As reported by Bloomberg Business, David Pan took to Twitter to comment that there is a chance for Compute North to have gone through the implications in the case of the cost-based procrastination to the mining facility in Texas as it has not been potentially monetized for a considerable time.