Texasbaserade krypto-datacenter-företaget Compute North ansöker om konkurs. Påverkar 280 MW & ca 40 000 riggar

Guys, we are here 🥲 AFAIK, this is the first major Bitcoin mining firm bankruptcy. Another important question is how this is going to affect its 280 MW mining farm that hosts ~ 40,000 rigs for Marathon in TX.

• Company listed as much as $500 million of debt in petition

• Compute North provides data center services for crypto miners

Compute North Holdings Inc., which provides data center services for cryptocurrency miners and blockchain companies, filed for bankruptcy in Texas on Thursday.

Based in Eden Prairie, Minnesota, Compute North blamed its financial woes on the troubled market for digital assets, the increasing cost of electricity and the time lag between spending to build data centers and getting revenue from those facilities. The decision to file a Chapter 11 bankruptcy now was forced on the company mainly by the actions of its primary lender, Generate Lending LLC, an affiliate of Generate Capital, according to a court declaration filed by Compute North’s chief financial officer and treasurer, Harold Coulby.

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.