Compute North started in 2017 as a crypto mining operation, branching out into co-location services that provided low-cost power for data centers, according to the company’s website. In April, the company broke ground on a 300 megawatt co-location facility in Granbury, Texas.
Mining companies have faced renewed stress from low Bitcoin prices and soaring energy costs. A closely watched gauge of mining revenue dropped to a two-year low earlier this month. Compute North faced delays in energizing mining machines for its client Marathon Digital Holdings Inc. in Texas due to local regulations in the state.
Marathon has about 40,000 mining machines installed in the company’s West Texas facility, which has a roughly 280 megawatt capacity. Compute North also operates data centers in North Dakota and Nebraska, according to its website.
The case is Compute North Holdings Inc., 22-90272, US Bankruptcy Court, Southern District of Texas.