Bitcoin mining data center company Compute North files for bankruptcy

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Compute North, a data center provider for cryptocurrency miners and blockchain companies, has deposit for Chapter 11 bankruptcy in a Texas court as energy costs soar and the protracted crypto market crash continues.

The Minnesota-based company will continue to operate as it develops a plan to repay creditors. In the filing, he said he owed up to $500 million to at least 200 creditors. Compute North estimated its assets to be worth between $100 million and $500 million, according to the documents.

The company started as a crypto-mining operation in 2017, before pivoting to provide hosting services to other mining companies. Earlier this year, it faced delays in opening a major mining facility in Texas due to local regulations, which likely hurt its ability to generate profits.

Compute North customers include crypto mining giants Marathon Digital and Compass Mining. Both digital marathon and mining compass tweeted that they don’t expect Compute North’s bankruptcy filing will impact their business operations.

Compute North had raised $385 million in equity and debt funding in February, and has secured numerous deals with crypto miners including Hive Blockchain and Atlas Mining.

Its bankruptcy filing makes Compute North the latest big victim of the ongoing crypto winter, along with a crypto broker digital travelcrypto lender Celsius Networkand crypto hedge fund Capital of the Three Arrows all filed for bankruptcy earlier this year.

A combination of falling cryptocurrency prices and soaring energy costs weighed on miners’ profits, with a closely watched gauge of Bitcoin mining earnings falling to a low. lowest for two years earlier this month.

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