The winter has been harsh for companies in the crypto space. From instigating liquidity crises to denting balance sheets, it has hampered the day-to-day operations of several companies. In July, for example, two well-known names from space:Voyager Digital Assets and Celsius network— filed for Chapter 11 bankruptcy.
For its part, Chapter 11 filings allow a company to continue operating while it devises a plan to repay creditors.
Compute North files for bankruptcy
Now, in what is the latest development, Bitcoin mining hosting provider Compute North Holdings Inc archived for Chapter 11 bankruptcy. According to the petition, the company’s assets are worth between $100 million and $500 million. Specifically, Compute North owes about $500 million to at least 200 creditors.
Kristyan Mjolsnes, Compute North’s head of marketing and sustainability, said in an email to Bloomberg:
The company has filed for bankruptcy to stabilize its operations while being restructured under judicial protection.
According to details on the website, Compute North started as a crypto mining operation in 2017. After that, it gradually expanded to provide co-location services that provided low-cost power for data centers. Earlier this year, the mining infrastructure company had raised $385 million in equity and debt financing to fund its new Bitcoin mining data centers.
Then in April, the company announced that construction was underway on a 300-megawatt co-location facility in Granbury, Texas. At the time, Dave Perrill, CEO and co-founder of Compute North said:
We are developing next-generation data centers that meet the unprecedented needs of next-generation technology at a time when the demand for energy efficiency and stabilizing the power grid has never been greater.
Marathon Digital Holdings is notably one of Compute North’s clients. In a recent tweet, the Bitcoin mining company stated that Compute’s submission “will not affect” its current mining operations. It added,
We communicate with the hosting provider and monitor their progress as they go through this process.