Sep 23, 2022 03:20AM ET
By:AnalysisWatch
Bitcoin mining hosting company Compute North has filed for bankruptcy amid mounting pressure on the company due to the effects of the crypto-winter and rising energy costs. The firm's CEO, Dave Perrill, has also resigned from his position but will remain on the board of directors.
The company filed for Chapter 11 bankruptcy on Thursday in the U.S. Bankruptcy Court for the Southern District of Texas, which is now pending before Judge David Jones.
Under Chapter 11, the company can continue to operate while it works out a plan to repay creditors. The filing indicates that Compute North owes about $500 million to 200 creditors, while its assets would be valued between $100 million and $500 million.
Compute North offers hosting services and large-scale cryptocurrency mining facilities, hardware, and a BTC mining pool. It is one of the largest data center providers in the United States and has renowned partners in the BTC mining sector, such as Compass Mining and Marathon Digital.
"Compute North staff informed us today that the bankruptcy filing should not disrupt business operations." "We continue to monitor the situation and will provide further updates as they become available," Compass Mining said.
"Bitcoin prices had gone through multiple down cycles from then until late this year, when it was finally able to energize the machines," he wrote.
Compute North joins a long list of cryptocurrency companies that have fallen victim to cryptowinter or, in some cases, helped create it, including Voyager Digital, Three Arrows Capital, Celsius Network, and BlockFi, to name a few.