- Low Bitcoin Price and Rising Energy Costs Hit Mining Companies
- Data from Arcana Research shows that daily Bitcoin miner revenue is down 70% from its peak in November 2021.
Crypto mining data center operator Compute North has filed for bankruptcy in Texas.
The petition was filed Thursday in the US Bankruptcy Court for the Southern District of Texas.
The Minnesota-based company owes as much as $500 million to at least 200 creditors, according to filings. Its assets are worth from him $100 million to he $500 million.
Compute North said under its estimate of available funds, it has no capital to distribute to unsecured creditors after payment of management fees.
Compute North started as a cryptocurrency mining company in 2017, but changed its focus to offering colocation hosting services in 2018. Its website shows.
The company raised $385 million in debt in February, according to Crunchbase data. Investors include Mercuria, National Grid Partners and Generate Capital.
Slumping bitcoin prices and rising electricity costs are making crypto miners less profitable, and many home miners who once minted money from their own garages are now finding themselves struggling.
According to Arcane Research, daily revenue for bitcoin miners fell by more than 10% last week to $17.9 million per day, the lowest level since November 2020. 2021 years.
Delays caused by Compute North’s energy provider prevented one of its largest clients, Marathon Digital, from activating its mining machines for several months earlier this year. Marathon had about 40,000 mining machines at the company’s West Texas facility with a 280 megawatt bitcoin mining facility.
Compute North and Marathon Digital did not respond to Blockworks’ requests for comment by press time.
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