Thursday, December 1, 2022
HomeLaw & PoliticsUS crypto mining firm Compute North files for its bankruptcy

US crypto mining firm Compute North files for its bankruptcy

On September 22, Compute North Holdings Inc., a company that offers data centre services to cryptocurrency miners as well as firms that are involved in blockchain technology, filed for bankruptcy in the US bankruptcy court in the state of Texas.

The bankruptcy judge, David R. Jones, is now reviewing the petition that was submitted. Also earlier this month, the CEO of the firm, Dave Perrill, said that he would be stepping down from his post, although he would continue to serve on the board.

Compute North is Facing Issues:

Compute North is Facing Issues
Compute North is Facing Issues

As long as the company complies with the conditions of the filing, it will be permitted to keep operating normally while it formulates a detailed plan to reorganise its debt and pay back its creditors. The company, Compute North, disclosed that it owes at least 200 creditors a total of up to $500 million. On the other hand, the value of its assets ranges between $100 million and $500 million.

It is hoped that filing for bankruptcy will help stabilise the company’s operations while it goes through the reorganisation process under court protection.

The filing comes seven months after the Minnesota-based provider of cryptocurrency mining infrastructure raised $385 million in Series C funding and debt financing. It recently began construction on a 300 megawatt capacity co-location facility in Texas.

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Reporter
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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