Compute North was overwhelmed by energy costs in the middle of crypto winter.
Calculate the northone of the companies bitcoin mining (BTC) the largest in the world, was forced to declare bankruptcy because it could not afford its production costs. The company explained that it was unable to cope with the rapidly increasing energy costs due to the longer cycle of the cryptocurrency market.
In early September, the fate of Compute North was already in doubt after the resignation of its CEO, Dave Perrill.and in recent days the company has officially declared bankruptcy in the United States Bankruptcy Court for the Southern District. Texas. However, Compute North’s board is preparing a comprehensive restructuring plan to pay off its creditors.
According to the legal case, the company owes approximately 500 million USD over 200 creditors. Meanwhile, his fortune is in the hundreds of millions of dollars, but the total figure does not reach.
At the beginning of this year Compute North Raises $385 Million USD through Series C fundraising and debt financing. In addition, a few months ago, the company, founded in 2017, planned to build a 300-megawatt facility in Texas.
The company currently has several pending business deals with other industry players, but some have already let their investors know that Compute North employees have made it clear that “bankruptcy filing should not interfere with business operations“.