Soaring energy costs in addition to raging crypto winter have forced one of the largest Bitcoin mining hosting companies to announce bankruptcy.
Compute North, which happens to be the latest casualty of the ongoing crypto rout, has filed for a Chapter 11 bankruptcy in the US Bankruptcy Court for the Southern District of Texas.is pending before the Judge Bankruptcy David R Jones. The company’s CEO, Dave Perrill, also stepped down from his position earlier this month but will continue to remain on the board.
The bankruptcy filing is expected to help stabilize its business as carries out a restructuring process under court protection. The filing comes seven months after the Minnesota-based crypto mining infrastructure provider secured a $385 million round that includes a Series C fundraise and debt financing. More recently, it broke ground on a 300-megawatt co-location facility in Texas.Compute North was launched in 2017 as a crypto mining operation. Over the year, it expanded its operations into co-location services offering low-cost power for data centers.