US mining company ‘Compute North’ files for bankruptcy protection! Only completed $380 million in financing in February

Bitcoin prices have been oscillating below $20,000 recently, and many miners are facing rising costs but shrinking profits. According to the latest report from Coindesk on September 23, Compute North, one of the largest cryptocurrency mining companies in the United States, has officially applied for bankruptcy protection in the Texas court, which has shocked the market.
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A Compute North spokesperson said: “The company has initiated voluntary Chapter 11 bankruptcy proceedings to provide the company with the opportunity to stabilize its business and implement a comprehensive restructuring that will allow us to continue serving our customers and partners and conduct The necessary investments to achieve our strategic goals. “
In addition, Compute North CEO Dave Perrill also announced his resignation earlier this month, due to the pressure caused by the collapse of cryptocurrency prices, to serve on the board of directors and to be succeeded by current chief operating officer Drake Harvey.
 
According to Compute North’s official website, the company has four large mining farms in the United States: two in Texas and two in South Dakota and Nebraska.
 
In addition, the company also has cooperative relationships with many well-known international mining companies, including: Marathon Digital, Compass Mining, Singapore mining company Atlas Mining and so on. In order not to cause concerns among customers, these companies also issued statements earlier promising that “Compute North’s bankruptcy will not affect current company operations.”
 
It’s worth noting that Compute North just announced in February that it had raised $380 million, including an $85 million Series C equity round and $300 million in debt. But just when everything seemed to be booming, the price of bitcoin plummeted and the cost of electricity rose due to inflation, and even such a large mining company was in a situation where it needed to file for bankruptcy protection.
 
In the future, if Compute North needs debt financing, or if other companies want to acquire its assets, it may not be easy to raise funds.


Post time: Oct-17-2022