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Saturday, September 24, 2022

Compute North, A BTC Mining Company, Declares Bankruptcy

Compass Mining, one of the well-known Compute North hosting partner, announced that business as normal will continue again for foreseeable future.

Compute North, a company that hosts BTC mining operations, has declared bankruptcy under chapter 11 as a result of the increasing pressure placed on by the constant bearish market of cryptocurrency with rising energy prices. Dave Perrill, the company’s CEO, has resigned but will still serve on their board.

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On Thursday, Its company filed for bankruptcy under Chapter 11 inside the United States Bankruptcy Court for the Southern District of Texas, which is currently being heard by David Jones, the judge in this case.

The company can continue operating under a filing of 11th chapter while it develops a strategy to pay off creditors. According to the statement, Compute North in debit to 200 lenders approximately $500 million, and its properties are estimated to be valued around hundred million and $500 million.

The BTC Mining Company, Compute North Declared Their Bankruptcy: 

Compute North provides software, hosting, huge cryptocurrency mining operations, equipment, and a Bitcoin mining pool. This is one of the biggest U.S. datacentre operators and has well-known BTC mining industry partners, including both Marathon Digital and Compass Mining.

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Both businesses have issued comments on Twitter stating that, based on the data they currently have, their commercial activities would go normally.

“The personnel at Compute North told us today that bankruptcy case shouldn’t affect normal business operations. People are keeping an eye on the issue, and we’ll let you know when there are any new developments, said Compass Mining.

Mining industry has been significantly impacted by BTC’s bearish performance in 2022, and in the case of Texas, increased fuel prices and frequent power failures during sweltering heat storms haven’t helped either.

A huge mining plant in Texas that Compute North could not commercialize for months had a significant delay, Bloomberg Business writer David Pan noted on Twitter.

 

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