By Anushree Dave in New York
Compute North is one of the largest crypto mining firms, with four facilities in the U.S.
Compute North, a firm that provides data to crypto miners and companies, filed for Chapter 11 bankruptcy on Thursday evening.
The document, which was filed in the United States Bankruptcy Court for the Southern District of Texas, said Compute North owes $500 million to 200 creditors, with its assets worth between $100 million and $500 million, Bloomberg reported.
Compute North is one of the largest crypto mining firms, with four facilities in the U.S. The company raised $385 million earlier this year, and the funding round was comprised of $85 million in Series C equity round and $300 million in debt financing. Rising energy costs and "crypto winter" with a drop in bitcoin prices, have made it difficult for companies like Compute North to stay profitable.
Compute North's partners included big names in the bitcoin mining sector including Marathon Digital (MARA)and Compass Mining . As of Friday, both companies have confirmed on their Twitterpages that the bankruptcy will not impact their operations based on current information available.
Earlier this month, chief executive Dave Perrill, stepped down from the company but will continue serving on Compute North's board.
(END) Dow Jones Newswires
September 23, 2022 15:56 ET (19:56 GMT)
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