Compute North, a mining hosting provider , filed for Chapter 11 bankruptcy protection in a federal court.

Compute North filed for Chapter 11 bankruptcy

In the context of the mining industry struggling with the volatility of and escalating electricity costs, Compute North filed a lawsuit in the United States Bankruptcy Court for the Southern District of Texas.

Kristyan Mjolsnes, the company's head of marketing and sustainability, said:

“We have commenced voluntary Chapter 11 proceedings to seek opportunities to stabilize our business and comprehensively restructure. This will allow us to continue to serve our customers and partners and make the investments necessary to achieve our strategic goals.”

Compute North has between $100 million and $500 million in both liabilities and estimated assets, according to filings. The company raised $385 million, including $85 million in Series C equity and $300 million in debt financing for mining data centers. Bitcoin new.

At the end of July, Compute North Founder and CEO Dave Perrill announced the company is planning to increase mining capacity by 1.2 gigawatts over the next 12 months.

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In the list of customers of Compute North, there are several mining companies Bitcoin The largest, including Marathon, the mining industry's last line of defense, recently began powering a massive 280-megawatt Bitcoin mining facility in western Texas. The two companies also closed a deal to provide 42 megawatts of storage in July.

Marathon representative said:

“Based on the information available at this time, we understand that the filing will not affect existing mining operations. We are in contact with the hosting provider and are monitoring this progress.”

In the current market downturn, miners are probably the hardest hit. Many miners have chosen to sell less and liquidate equipment to cover debts. Mining companies across North America are facing a debt burden of up to $4 billion as the value of their mining output declines along with the market price of Bitcoin.

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