As per latest reports, crypto mining data center firm ‘Compute North’ files for Chapter 11 Bankruptcy protection in a federal court, amidst the decline in bitcoin pricing and rising power costs.
The petition which was filed on Thursday in the U.S. Bankruptcy Court for the Southern District of Texas stated, “After any administrative expenses are paid, no funds will be available for distribution to unsecured creditors.”
As per the filing, Compute North has around $100 million to $500 million both in estimated liabilities and estimated assets. It owed as much as $500 million to at least 200 creditors.
Kristyan Mjolsnes, head of marketing and sustainability, said that Compute North seeks the chance to stabilize its business and carry out a comprehensive restructuring process. This will help the firm to continue to provide services to the customers and partners and also make the necessary investments to reach their strategic objectives.
Notably, earlier this month, CEO Dave Perrill had stepped down but now will reportedly continue to serve on the board. Moreover, Drake Harvey, who used to be chief operating officer, has now taken up the position of president at Compute North.
It is worth mentioning that Compute North’s list of clients include some of the biggest names from the bitcoin mining sector including Marathon, which recently announced plans to become carbon neutral by the year end.
On the filing, a Marathon spokesperson commented that “Based on the information available at this time, it is our understanding that this filing will not impact our current mining operations.”
The spokesperson disclosed that Marathon is in communication with Compute North and monitoring their progress as they work through this process.
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