Bitcoin mining firm Compute North files for bankruptcy, CEO resigns

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Bitcoin (BTC) mining data center operator Compute North filed for Chapter 11 bankruptcy, adding that CEO Dave Perrill stepped down in early September.

The company reportedly owes $ 500 million to approximately 200 creditors and has assets worth between $ 100 and $ 500 million.

Compute North filed for bankruptcy on September 22 and will continue to operate as it seeks solutions to its liquidity problem. Meanwhile, CEO Dave Perrill will remain on the board while chief operating officer Drake Harvey will take over as CEO.

Compute North is one of the largest data center operators for cryptocurrency miners and has partnerships with leading miners such as Marathon Digital and Compass Mining. It raised $ 385 million in February: $ 300 million came from debt financing, while $ 85 million came from its Series C equity financing.

North Compute faced a declining source of revenue

The company saw its fortune reservoir after a massive market downturn that plunged Bitcoin’s value below $ 20,000. Additionally, rising energy costs and growing BTC mining difficulty have made it difficult for miners to remain profitable.

David Pan, Bloomberg reporter tweeted that one of the reasons Compute North filed for bankruptcy was the delay with which its 280mW mining facility in Texas became operational, mainly due to approval issues.

According to Pan:

“[North Compute]The company’s failure indicates a growing difficulty in Bitcoin mining.

Compute North partners unaffected

Compute North partners have revealed that the company’s failure would not affect their operations.

Bitcoin mining companies – Marathon Digital and Compass Digital – tweeted that the failure of the data center operator would not impact their mining operations.

Compute North is the first cryptocurrency mining company to declare bankruptcy. Meanwhile, several cryptocurrency lenders such as Celsius Network, Voyager Digital, and others had previously filed for bankruptcy.

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